Locate the 2011 financial statements of The Walt Disney Company on the internet and consider the following questions:
1) Does Disney use the direct method or the indirect method? Explain.
2) Analyze Disney's overall cash flow picture for 2009, 2010, 2011 in light of the positive or negative cash flow patterns for the three categories of cash flows.
3) In the notes to Disney's financial statements, cash and cash equivalents is defined. What is that definition?
4) What is the largest dollar item in the Operating Activities section of Disney's 2011 statement of cash flows? Explain exactly what is represented by this item.
5) What would Disney's operating cash flow have been in 2011 if interest and taxes paid were not considered operating items?