Disney Finance Report

1820 WordsMar 24, 20118 Pages
As a subject business finance is an intensive one, it is related with the real world, practical and decision making regarding the investment portfolio of the business. The success and failure of the business lies in such decisions made and even reach the core of the business. Certain decisions require more investments in the business and once it’s made it may not be able to change them at all as the business may be concentrated on long-term commitment to the finance and investment. So to run a business smoothly in a long-term, vision on financial activities like profitability, liabilities, assets, turnover, investments are very much significant. In order to take good management decisions, the Directors of a company need to have accurate, up to date and realistic forecasts of their sales, purchases, overheads, gross margins, net margins and cash flow. Critical decisions about the future of the company, such as levels of employment, investment, salaries, sales, stock levels, debtors and creditors, overdraft requirements etc. should be made with up to date financial information, not just based mainly on gut feel and instinct (McLaney, 2003). To grow, make profits and to survive in today’s business every company should have immense control over the finance. Inadequate cash in the system will hinder the growth opportunity of profitable businesses also. Proper control over the finances can be seen in company’s financial statement. As per Holmes, Sugden and Gee (2002), “the objective of the financial statements is to provide information about the financial position and performance of an enterprise that is useful to a wide range of users for assessing the stewardship of management and for making economic decisions”. Financial statements include: • Income Statement • Balance sheet. • Cash flow statement. The vision of Walt Disney was to create an exclusive

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