The balance sheet is a snapshot of a company’s financial condition. It shows assets, liabilities, and stockholder’s equity. An asset is an item of economic value owned by an individual or corporation, especially that which could be converted to cash or liquidated. A liability is an obligation that legally binds an individual or company to settle a debt. When one is liable for a debt, they are responsible for paying the debt or settling a wrongful act they may have committed. Stockholder’s equity is a company’s common stock equity as it appears on a balance sheet, qual to total assets minus liabilities, preferred stock, and intangible assets such a good will. Disney had reported their fair values for cash equivalents and cash, receivables, accounts payable, contracts, derivates and investments that are available for sale. The Company estimates their total current cash and equivalents totaling an amount of 13. 7 billion for October 2, 1010 and 12. 6 billion for October 3, 2009. Disney is such a huge company and has array of assets and best known brands. From parks, property, leasehold, equipments, furniture, land, copyrights, FCC licenses, trademarks and other intangible assets.
The Company’s total assets totaled up to 42. 2 billion for 2010 and 38. 1 billion for 2009. Disney has many big assets but their largest assets are their parks and resorts/ properties. Based on their 2 most recent annual reports, the Company reported their largest assets coming in at 16 billion for October 2, 2010 and 16 billion for October 3, 2010. Two of the largest liabilities that Pixar has forgone in the last two most recent reporting periods are the Steven Jobs with The Pixar Touch and the tax liability of backdated Pixar stocks. With the Pixar Touch liability Steven Jobs had put $50 million into the company.
The book started losing money the first year putting a liability into the company. With the backdated Pixar stocks puts many jobs in the dark spot light. This puts Pixar having a total of $31,687,000 of all current liabilities at the end of their most recent annual report. Pixar revenue for the past three years has taken a leap of an average of 54. 4%. Annual sales for the 100 top finishers rose of an average of 30. 7% annually. This puts Pixar having profits jump up to 55. 9% a year. Pixar is the hottest movie maker on the years hot growth list. Walt Disney is a huge entity.
The Walt Disney World Resort encompasses 30,500 acres, making it approximately the same size as San Francisco. Looking at Disney’s balance sheet their total assets at the end of its 2 most recent annual reporting periods (2010) was $69,206,000. The total amount of accounts payable at the end of its 2 most recent annual reporting periods was $6,109,000. Also, the company’s total current liabilities at the end of its 2 most recent annual reporting period were $11,000,000. An income statement reports the profitability of a company’s operations over a period of time (Weygandt, 2008).
Net income is when a company’s revenues exceed their expenses, as opposed to net loss when a company’s expenses exceed their revenues, and will not include investment or dividend transactions. Disney has had the success in being able to report all net income on at least three of its last income statements. Disney’s net incomes for the last three annual reporting periods are as follows: •2008 – $4,427,000 •2009 – $3,307,000 •2010 – $3,963,000 As you can see, from 2008 to 2009 Disney’s net income decreased by $1,120,000. Most of this loss is due to the state of the current economy.