Problem
Look at Disney's (Walt) Financial statements for the most recent fiscal quarter. Complete the calculations for determining working capital. Then tell how the financial statements help determine financial health.
1) Financial Statements: Explain the financial statements to calculate a business's working capital. Also, explain how to use each financial report for the calculation. Give examples to support your claims. Specifically, address the following rubric criteria:
2) Working Capital's Role: Discuss how businesses that manage their working capital stay healthy.
3) Working Capital Interpretation: Use the correct formula to calculate working capital. Then discuss the business's current financial liquidity position.
a) For example, does the business have enough working capital to address bills to suppliers? Will there be potential cash inflow at the end of the year?
4) Working Capital Management Trend: Discuss the business's trend in how they manage their working capital.
a) Remember that financial statements reflect a specific period and the value of the business's working capital. Use Mergent Online to find financial statements for earlier periods. This will give you a better sense of the business's trends.