The Walt Disney Company reported the following in its 2016 annual report (in millions): 201620152014Net income$9,400 $8,400 $7,500 Net cash provided by operating activities 13,200 10,900 9,780 Purchase of parks, resorts, and equipment (4,800) (4,300) (3,300) Required:Based solely on the results reported above for the three years, did Walt Disney Company need external financing to purchase parks, resorts, and equipment during these years?

Based on the above information , in these three years net cash provided by operating activities is more than the cost incurred to purchase of parks , resorts and equipment. Hence, Walt Disney company have enough cash for investing in equipments. Therefore, Walt Disney does not need to external financing to purchase parks, resorts and equipment during these years . Answer : No

Answered: The Walt Disney Company reported the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Walt Disney Company reported the following in its 2016 annual report (in millions):

	2016	2015	2014
Net income	$	9,400		$	8,400		$	7,500
Net cash provided by operating activities		13,200			10,900			9,780
Purchase of parks, resorts, and equipment		(4,800	)		(4,300	)		(3,300	)

Required:

Based solely on the results reported above for the three years, did Walt Disney Company need external financing to purchase parks, resorts, and equipment during these years?

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