Nonoperational Assets

1. Analyze the changes in nonoperational assets to determine cash inflows and outflows from investing activities.

2. Analyze the changes in nonoperational liabilities and stockholders’ equity accounts to determine cash inflows and outflows from financing activities.

3. Recreate journal entries to measure the effect on ledger accounts where several cash transactions have occurred.

Question: For the year ended September 27, 2008, The Walt Disney Company reported the net outflow of over

$2.1 billion in cash as a result of its investing activities during that period (all numbers in millions):

The Walt Disney Company Investing Activity Cash Flows for Year Ended September 27, 2008

This portion of Disney’s statement of cash flows shows that a number of nonoperating asset transactions created

this $2.1 billion reduction in cash. Information about management decisions is readily available. For example, a

potential investor can see that officials chose to spend cash of almost $1.6 billion during this year in connection

with Disney’s parks, resorts and other property. Interestingly, this expenditure level is almost exactly the same

as the monetary amount invested in those assets in the previous year. With knowledge of financial accounting, a

portrait of a business and its activities begins to become clear.

After the cash amounts are determined, conveyance of this information does not appear particularly complicated.

How does a company arrive at the investing activity figures that are disclosed within the statement of cash flows?

Answer: In most cases, an accountant takes the ledger account for each nonoperating asset (land, buildings,

equipment, patents, trademarks, and the like) and investigates the individual transactions that took place during

the year. The amount of every cash change is identified and reported. A cash sale of land creates an inflow whereas

the acquisition of a building probably requires the payment of some cash.

The difficulty in this process can come from having to sort through multiple purchases and sales to compute

the exact amount of cash involved in each transaction. At times, determining these cash effects resembles the

work required to solve a puzzle with many connecting pieces. Often, the accountant must replicate the journal

entries that were made originally. Even then, the cash portion of these transactions may have to be determined by

mathematical logic. To illustrate, assume that a company reports the following account balances.

Academic Heros
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

Our writers are encouraged to read and research widely to have rich information before writing clients’ papers. Therefore, be it high school or PhD level paper, it will always be a well-researched work handled by experts.

Professional and Experienced Academic Writers

For one to become part of our team, thorough interview and vetting is undertaken to make sure their academic level and experience are beyond reproach, hence enabling us give our clients top quality work.

Free Unlimited Revisions

Once you have received your paper and feel that some issues have been missed, just request for revision and it will be done. In addition, you can present your work to the tutor and he/she asks for improvement/changes, we are always ready to assist.

Prompt Delivery and 100% Money-Back-Guarantee

All our papers are sent to the clients before the deadline to allow them time to review the work before presenting to the tutor. If for some reason we feel our writers cannot meet the deadline, we will contact you to ask for more time. If this is not possible, then the paid amount will be refunded.

Original & Confidential

Our writers have been trained to ensure work produced is free of plagiarism. Software to check originality are also applied. Our clients’ information is highly guarded from third parties to ensure confidentiality is maintained.

24/7 Customer Support

Our support team is available 24 hours, 7 days a week. You can reach the team via live chat, email or phone call. You can always get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

You have had a hectic day, and still need to complete your assignment, yet it is late at night. No need to panic. Place your order with us, retire to bed, and once you wake up, the paper will be ready.


Essay Writing Service

It does not matter the urgency of your paper, or the academic level, our team is ready to help you 24/7. Just contact us and all your academic needs will be sorted.


Admission Essays & Business Writing Help

A student is often required to write an admission letter requesting to be admitted in a certain institution. For you to be gain that admission in your dream institution, you must write a convincing letter. You can depend on our team for the best admission letters.


Editing Support

Academic writing is not just about getting information and throwing it all over. Our team will ensure you have a polished paper that is coherent and has a good flow of information. We also ensure the paper follows the correct formatting styles like APA, Harvard, MLA, Chicago/Turabian.


Revision Support

If our writers write a paper but you are not satisfied in one way or another, you can always ask for revision. This is totally free. Our writers and editors will revise your paper untill you are be totally satisfied. We as well offer revision for papers not done by our writers at a small fee.