Based on the Annual Report for 2015-2018 for Disney and Netflix: Answer the following: 2. Accounts...

Based on the Annual Report for 2015-2018 for Disney and Netflix: Answer the following:

2. Accounts Receivable Management
• Who takes longer to collect AR (Days Sales Outstanding ratio)?
• What are their respective 3-year trends for DSO?
• What options could the company consider to improve DSO?

Expert Solution

Please see the table below. Please be guided by the second column titled “Linkage” to understand the mathematics. All financials are in $ Billion.

	Linkage	2015	2016	2017	2018	Source
Disney
Revenues	A	52.00	55.37	54.94	59.47	https://www.marketwatch.com/investing/stock/dis/financials
Account Receivables	B	8.02	9.07	8.63	9.33	https://www.marketwatch.com/investing/stock/dis/financials/balance-sheet
Average receivables	C = average of successive Bs		8.55	8.85	8.98
Days sales Outstanding	D = C / A x 365		56.33	58.80	55.12
Netflix
Revenues	A	6.78	8.83	11.69	15.79	https://www.marketwatch.com/investing/stock/nflx/financials
Account Receivables	B	-	-	-	-	https://www.marketwatch.com/investing/stock/nflx/financials/balance-sheet
Average receivables	C = average of successive Bs		-	-	-
Days sales Outstanding	D = C / A x 365		-	-	-

• Who takes longer to collect AR (Days Sales Outstanding ratio)?

Netflix doesn't have any receivables. It's receivables is zero. Hence, the comparison cant be made. But for the sake of completion, Disney takes longer in comparison to Netflix, to collect AR.

• What are their respective 3-year trends for DSO?

For Disney, the figure is very stable and is in the range of 55 - 60 days. It has gone up marginally in 2017 but then declined in 2018

For Netflix, no such trend could be studied as it has zero receivables.

• What options could the company consider to improve DSO?

In order to improve the DSO, the company could consider the following:

Incentivise the payments: It can start offering discount on prompt payment or within a specified period.
Aggressively collecting money from the customers
Exercising cautious while making credit sales to the customers

jeff jeffy answered 1 year ago

Research on the Walt Disney 2018 Annual Report/10K report. Discuss the history, main lines of business,...

Research on the Walt Disney 2018 Annual Report/10K report. Discuss the history, main lines of business, financil performance and overview and ratios (rev. growth, profit margins, current ratios), controls, risks and ethics issues. Is the report useful to large companies and administrators and or investors? I'm not sure where to begin here? I will be writing a two page paper on this and there are no examples. I cannot find the Walt Disney 2018 Annual Report as well? I may...

5.5 ANALYSIS OF ANNUAL REPORT OF McDONALD'S IN 2015 The annual report of Mcdonalds in 2015...

5.5 ANALYSIS OF ANNUAL REPORT OF McDONALD'S IN 2015 The annual report of Mcdonalds in 2015 is a well written report that has covered mostly all the aspects that needs to be framed while putting doen the collective data of the year.The report has covered topics relating to its business,distribution,financial statements,risk factors,legal proceedings,quantitative and qualitative disclosures about market risk.The report also shares the data of unresolved staff comments and relationships and related transactions. Headings are very important and they have...

Accounts Receivable Turnover for Morningstar The 2015 annual report of Morningstar (the maker of Circus-o's and...

Accounts Receivable Turnover for Morningstar The 2015 annual report of Morningstar (the maker of Circus-o's and Crunch'ems) reported the following amounts (in millions of dollars): Revenues, for the year ended May 31, 2015 $15,690 Accounts receivable, net, May 31, 2015 953 Accounts receivable, net, May 31, 2014 1,082 Required: 1. Compute Morningstar’s accounts receivable turnover ratio for the year ended May 31, 2015. Assume that all sales are on credit. Round your answer to two decimal places. times 2. What...

Using the 2015 Comprehensive Annual Financial Report for St. Tammany Parish included, please answer the following...

Using the 2015 Comprehensive Annual Financial Report for St. Tammany Parish included, please answer the following questions. http://www.stpgov.org/files/Departments/Finance/2015_CAFR.pdf All questions relate to the financial statements of St. Tammany Parish for the year ended December 31, 2015. For each answer also write the page number where you found the answer. NOTE: the page number is the page number listed in the CAFR which is not the same as the page number up top in Acrobat Reader!!! 1. The total assets of...

2. The following note appeared in the 2018 annual report of Roca Company: Inventories Inventories (in...

2. The following note appeared in the 2018 annual report of Roca Company: Inventories Inventories (in millions) at December 31 consisted of: 2018 2017 Finished goods $ 1,078.3 $ 926.7 Raw materials and work-in-process 716.2 684.7 Supplies 78.0 65.6 Total (approximates current cost) $ 1,872.5 $ 1,677.0 Reduction to LIFO cost – 16.1 $ 1,872.5 $ 1,660.9 Inventories valued at LIFO comprised approximately 44% and 42% of inventories at December 31, 2018 and 2017,...

Refer to Eli Lilly’s 2012 annual report to answer the following questions. The 2012 annual report...

Refer to Eli Lilly’s 2012 annual report to answer the following questions. The 2012 annual report of Eli Lilly & Company can be found here: http://www.sec.gov/Archives/edgar/data/59478/000005947813000007/lly-20121231x10k.htm How much of the 2012 accounts receivable balance does the company expect to collect? What is the percentage of “other receivables” to total current assets at the end of 2012? Round to the nearest whole percentage. What is included in the “other receivables” balance?

The following information is taken from the 2015 annual report to shareholders of COVID Co.

The following information is taken from the 2015 annual report to shareholders of COVID Co. For Fiscal 2015 For Fiscal 2014 Bad Debt Expense accounts $ 47 million $25 million At Fiscal Year-end 2015 At Fiscal Year-end 2014 Accounts receivable, net 13,463 million 13,732 million Accounts receivable, gross 13,552 million 14,064 million 1) What is the balance in COVID's allowance for doubtful accounts at the end of the fiscal years 2015 and 2014, respectively? 2) Using your answer from part (1)...

Analyzing Unearned Revenue Disclosures The following disclosures (excerpted) are from the September 2, 2018, annual report...

Analyzing Unearned Revenue Disclosures The following disclosures (excerpted) are from the September 2, 2018, annual report of Costco Wholesale Corporation. The Company generally recognizes sales, net of returns, at the time the member takes possession of merchandise or receives services. When the Company collects payments from members prior to the transfer of ownership of merchandise or the performance of services, the amounts received are generally recorded as deferred sales, included in other current liabilities in the consolidated balance sheets, until...

Scenario 2: Bates Corp 2018 annual report disclosed the following pension information: Benefit obligations and fair...

Scenario 2: Bates Corp 2018 annual report disclosed the following pension information: Benefit obligations and fair values of plan assets as of December 31, 2018, for Bates’ pension and postretirement plans are as follows: In millions Benefit Obligation Fair Value of Plan Assets U.S. pension $13,683 $10,312 U.S. postretirement 280 – Non-U.S. pension 219 153 Non-U.S. postretirement 23 – What conclusions can you draw about the funded status of the company's pension plans and post employment obligation? Is this a...

#2) Based on data from the Bureau of Labor Statistics, in 2015 the mean annual salary...

#2) Based on data from the Bureau of Labor Statistics, in 2015 the mean annual salary for a registered nurse was $71,000 with a standard deviation of $1,140. Assuming that the salaries are normally distributed, find the probabilities indicated in parts a and b. Show your work to calculate the necessary z-scores, include a sketch showing the corresponding areas under the standard normal curve (similar to those shown on page 239), and use the standard normal distribution curve in the...

Question