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ACCT 220 PRINCIPALS OF ACCOUNTING SEC 10-K PAPER

ACCT 220 PRINCIPALS OF ACCOUNTING SEC 10-K PAPER

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Author: Joyce Buda
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ACCT 220 Principals of AccountingSec 10-K Paper10/03/2015The walt Disney CompanyThe Walt Disney Company describes themselves as a “leading diversifiedinternational family entertainment and media enterprise with five business segments:media networks, parks and resorts, studio entertainment, consumer products andinteractive media.” [ CITATION Abo \l 1033 ] While this is most definitely true, in abusiness sense, The Walt Disney Company (Disney), is much more than that to theirconsumers. Disney has become, over the years, synonymous with “making dreamscome true” by capturing the heart of childhood imaginations and bringing them to lifethrough movies, songs, theme parks, games and toys. (Being number 57 on the Forbes500 Companies list definitely has helped make many investor’s dreams come true aswell.)In this paper, I would like to take a closer look at Disney’s fiscal year 2014, andprovide a brief glimpse into their financial activities, success over the last year, andpotential for next year with an important purchase by the Walt Disney Media Network. Iwill be referencing their Sec 10-K report [CITATION Uni14 \l 1033 ], which is theircomprehensive summary of their business activities as reported to the FederalGovernment for the months September 2013 – September 2014. Disney is incorporatedin Delaware with their Headquarters located in Burbank, California. The auditing agencyfor their report is PricewaterhouseCoopers LLP with a reported gross profit of $22.393Million for FY 2014.Inventory MethodsCalculating inventories for Disney is done two different ways based on theproduct. Because Disney sells merchandise as well as vacation packages, both arecalculated differently, as their vacation packages are sold in a timeshare format. Formerchandise, materials, and supplies, those inventories are generally determined on amoving average cost basis and recorded at the lower of cost or market. Disney vacationownership units are recorded at the lower of cost or net realizable value. In FY 2014,Disney reported an inventory of $1,574,000 which is an $87,000 increase from 2013.Accounts ReceivableStacey GreeneACCT 220 Principals of AccountingSec 10-K Paper10/03/2015Disney accounts receivable for the year were calculated to be $7,822 million,($7,976 million - $154 million for doubtful accounts). This is an $855 million increasefrom last year. These accounts include several media groups from ESPN, DisneyChannel, ABC Family, to radio stations and even some investments into onlinestreaming such as HULU LLC, and Fusion. Accounts receivable also accounts fortheme park revenue in Walt Disney World Florida, Disneyland California, DisneylandParis, 48% ownership in Hong Kong Disney, 43% ownership Shanghai Disney Resort,and royalties from Disney Tokyo. These figures also include revenues from DisneyVacation Club, Disney Cruise Line, Adventures by Disney, Aulani Vacations in Hawaii,and Disney Imagineering which designs theme park concepts and attractions to resortproperties.

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