Deciphering Financial Statements (The Walt Disney Company)

The 2004 financial statements for The Walt Disney Company can be found on the Internet.

Locate those financial statements and consider the following questions.

1. What inventory valuation method does Disney use?

2. How did the change in the level of inventory from September 2003 to September 2004 impact the statement of cash flows?

3. It isn’t possible to compute the number of days’ sales in inventory for Disney.Why not? Comment on the appropriateness of the level of detail presented in Disney’s income statement.