Andres Arroyave
FAP Part IV
April 17, 2015
I Introduction
1.
This report consists of an analysis of the financial health of IMAX Corporation according to its 2014 financial statements: income statement, balance sheet, and statement of cash flows. IMAX Corporation is a theatre company internationally recognized as the world leading entertainment technology company. While IMAX focuses on film development, production post-production, and distribution, those are only a few segments of its company 's operations.
2.
According to the economic principles people face trade-offs, and thus, people compare the cost of giving something up to its benefit. In the past few years, there has been a growing preference to find movie online to watch
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It reflects the focus on renovating or attempting to further improve its business plan.
II Income Statement Analysis
1.
The income statement is a financial statement that measures all of a company’s revenues, gains, expenses, and losses incurred to essentially generate a net income. Drawing from all forms of revenue and expenses including, the income statement represents the most accurate projected profitability of a company.
2.
Other than the net income incurred in 2014, IMAX Corporation has been on a steady incline since 2012. Between 2011 and 2012, the net income increased from $15,260 to $41,337 and since then has hit a plateau. The net income recorded in 2013 increased only $2,778, and since then, has shown a decrease in net income of $4,379. IMAX brands itself as an internationally recognized entertainment technology company; however, it is evident that the growing presence of online movie streaming has negatively impacted IMAX’s motion picture income.
3.
IMAX Corporation’s generates revenue from multiple sources, and so, according to IMAX’s 10-k, it has follows different manners of recognizing revenue. Revenue received or considered receivable in an arrangement is allocated based on the accounting guidance in the Lease Topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC), the Guarantees Topic of the FASB ASC, the Entertainment – Films Topic of the
(Ohara, 2007) Most financial statements are made public for the benefit of stakeholders and potential investors. The bottom-line is that financial statements are the main source for analyzing how well a company is operating. The income (or profit and loss) statement is simply a report card of how much activity (revenue) was performed in the period, how profitable that activity was (gross profit/loss), and what it cost the contractor to run the business (overhead). (Murphy, 2006)
Cineplex Inc is a leading Canadian entertainment company that operates a number of businesses such as food services, movie theatres, gaming, alternative programming and retail of apps for various electronics. The company has also entered into a joint venture agreement with SCENE which is currently a successful entertainment loyalty program in Canada (Cineplex, 2014).
a.) The income statement, also called the profit & loss account (P & L), is used to illustrate a company’s revenues and expenses over a particular period of time. It shows the net profit and/or loss for the given period (the difference between the business’ total income and its total costs). It also allows shareholders to see the performance of the business and if it has made an acceptable profit.
When you’re looking at the income statement, you can get information about profitability for a particular period. This is also called the profit and loss statement. The income statement is composed of both income and expenses. This statement can be used to deduct expenses from income and report either a net profit or net loss for that period. This statement will deduct all expenses from income and then report your net profit or net loss for that period. This will allow the business owner to determine if the business is bringing in a good amount of revenue to make a profit. The cash flow statement shows the movement in cash and balance over period. The cash flow can vary depending on the operating activities, investing and financing activities. This statement provides one business owner with insight to the company’s liquidity which is vital to the growth of the business. Reinvesting in business is very important, looking at the statement of retained earnings will tell a business owner how much were reinvested in the company. After profitable period, every big business has to give some of its profits to stockholders, and keep the rest amount as retained earnings. Out of all statements, retaining statement is important to companies that sells stocks to the public. This statement can also provide you with assets and liabilities information. These informations can be used to assess the financial health of your business. The results of a balance sheet will help the business owners to show the risk of liquidity and credit. Looking at these information you can measure trends and relationships to show where in the areas you can improve. These can also be compared to similar companies to show how the business measures up to leading competitors (Ali, 2010). In summary, the financial statements can provide a business owner
To provide an analysis and make recommendations to increase revenue in the movie exhibition industry.
There are two different views of Gilgamesh: a hero and a criminal. In the eyes of the citizens of Uruk, Gilgamesh was a criminal. They had a strong antipathy towards their King. Many people wanted to take him to court and have him sentenced to life in prison. Gilgamesh caused lots of trouble, which led to him being taken down from throne shortly after his journey from Mashu.
The income statement (IS) also known as the profit & loss statement provides the net gain or net loss of a business entity. The importance of the income statement is to evaluate profitability of a company (Finkler, Jones, and Koyner, 2013). The best use of the IS,
My analysis will cover competition from substitutes and the change in buyer behavior and demographics. I will use the five forces model of competition and a SWOT analysis along with other sources of analysis. The information and recommendations that follow will provide you with the insight and building blocks to compete in the movie exhibition industry.
Motion pictures are a key driver of the market for entertainment products, one of the largest export markets in US. Motion picture industry consists of three stages: studio production, distribution, and exhibition. The studios produce the lifeblood of the industry, the films that are its content. The biggest players at this level are the majors, big studios which integrate production and distribution, as do the slightly smaller mini-majors. The next stage is distribution. Distributors are the intermediaries between the studios and exhibitors. Distribution entails all steps following a film’s artistic completion including marketing, logistics, and administration. Distributors coordinate the manufacture and distribution of
* An income statement is a report that contains information in regards to an organizations’ assets and financing in order to obtain those assets that is collected over a certain period of time
External environment is very important for managers to make decision about the company’s direction and strategy. In order to gain a deep understanding of Blockbuster’s industry and competitive environment, the following seven questions need to be answered. Q1: What are the industry’s dominant economic features?
The first of the financial statements is the income statement. The income statement states the revenues and expenses in an understandable way that shows a clear picture of net income or net loss for the
Interactive media and studio entertainment are currently generating the least revenue. This is due to the high cost to produce films for studio entertainment and the fact that interactive media is a relatively new business channel for Disney. However, out of all business lines, these two have the most potential in their industry and are therefore very attractive. Interactive media is a hot trend that Disney will be able to capitalize on due to its acquisition of Playdom. While films are very expensive to produce and distribute, the profit potential from Marvel and Pixar make the industry very attractive overall.
This Income Statement also known as the Earnings Statements or statement of operation, is one of the four Financial Statement used by accountants, business owner’s, and investors. The Income Statement provides a detailed look into how profitable a business has been over a designated period of time.
Financial data shows that the company has recorded revenues of $ 788 million in the second quarter of 2010, with a reduction of $194 million if we consider the revenues of the same period the year before. Blockbuster have finally filed for Chapter 11 Bankruptcy carrying $900 million in debt. (Blockbuster Inc – Company profile, 2009).