The Walt Disney Company (DIS) has four business segments, described as follows:
• Media Networks: Television and radio
• Parks and Resorts: Resorts, including Disneyland
• Studio Entertainment: Motion pictures, musical recordings, and stage plays
• Consumer Products & Interactive Media: Character merchandising, Disney stores, books, and games
Disney recently reported segment operating income, revenue, and invested assets (in millions) as follows:
a. Use the DuPont formula to determine the
b. How do the four segments differ in their profit margin, investment turnover, and return on investment?
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Chapter 10 Solutions
Managerial Accounting
- Return on investment Commodore Entertainment has four profitable business segments, described as follows: • Media Networks: Television and radio• Parks and Resorts: Resorts, including Commodore land• Studio Entertainment: Motion pictures, musical recordings, and stage plays• Consumer Products: Character merchandising, Commodore stores, books, and magazines Commodore Entertainment recently reported sector income from operations, revenue, and invested assets as follows: Income from Operations Revenue Invested Assets Media Networks $193,644 $586,800 $978,000 Parks and Resorts 63,954 392,700 561,000 Studio Entertainment 12,927 333,600 417,000 Consumer Products 118,233 469,800 261,000 a. Use the DuPont formula to determine the return on investment for the four Commodore Entertainment sectors. Round Profit Margin and ROI to one decimal place and Investment Turnover to two decimal places. Profit Margin Investment Turnover ROI…arrow_forwardMacon Mills is a division of Bolin Products, Inc. During the most recent year, Macon had a net income of $40 million. Total assets were $470 million, non-interest-bearing current liabilities were $72,000,000. What are the invested capital and ROI for Macon? Solution What is the invested capital (Total Assets – Non-Interest-Bearing Current Liabilities)? What is the ROI (Net Income/Invested Capital)?arrow_forwardThe information for three businesses operating in the same industry is provided in the table that follows: BUSINESS COMPANY A COMPANY B COMPANY C Sales $ 300,000 $ 420,000 $ 380,000 Net income $ 18,000 $ 20,000 $ 19,000 Net profit margin ? ? ? Based on this data, calculate the net profit margin for each company. What is an analyst most likely to conclude about the profitability of the businesses? Group of answer choices Company A, is more profitable than company B and more profitable than company C. Company C is more profitable than company A, but less profitable than company B. Company B is more profitable than company A and less profitable than company C. Company C is more profitable than company A and less profitable than company B.arrow_forward
- Disney started inthe 1920sasan animation studio.How has the company diversified its offering since then?Analyze the companyâsmost currentâFiscalAnnual Reportâ to find out its primary revenue streams. What are the primary businesses that Disney operates today?arrow_forwardAs consultants in advisory services, we are hired by Sayko Corp to help analyze its regional operations in the contiguous U.S. Sayko wishes to draw on our expertise in financial statement analysis to help identify further expansion of operations. Please complete the following based on the information on the map (image): 1. Compute profit margin for each region.2. The company asks us which region it should focus on if it wishes to get the largest net income from each dollar of sales. If we use profit margin to guide our recommendation, which region do we suggest?3. Compute return on total assets for each region.4. The company asks us which region it should focus on if it wishes to get the largest net income from each dollar of assets invested. If we use return on total assets to make our decision, which region do we recommend?arrow_forwardMacon Mills is a division of Bolin Products, Inc. During the most recent year, Macon had a net income of $40 million. Total assets were $470 million, non-interest-bearing current liabilities were $72,000,000. What are the invested capital and ROI for Macon? Solution What is the invested capital (Total Assets – Non-Interest-Bearing Current Liabilities)? What is the ROI (Net Income/Invested Capital)? Please don't provide answer in image format thank youarrow_forward
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