Information available from Movie Gallery's 2005 10-K and second quarter 2006 10-Q were used in preparing this assessment. The website to locate Movie Gallery's 2005 10-K and second quarter 2006 (10-Q) can be located in the "investor relations" section on Movie Gallery's website at www.moviegallery.com. Movie Gallery, Inc.'s (the Company) most recent annual report was for the year-ended January 1, 2006 (the 2005 annual report year). The Company operates on a 52 / 53 week year with the year-end date being the Sunday following December 30. This results in some years having 53 weeks of income recorded even though the Company reflects depreciation on a twelve month basis (52 weeks). For the most recent year-end, the Company incurred a net loss before taxes of almost $550 million. This loss is non consistent with historical amounts reported by the Company. Two significant factors contribute to the loss. One was the acquisition of Hollywood Video. Hollywood was strapped with large amounts of debt resulting in the Company's interest expense charge increasing almost $68 million from the prior fiscal year. Also, as a result of acquiring Hollywood, the Company wrote-off the pre-acquisition deferred tax balances of Hollywood and set-up new deferred tax balances. These new balances were based on the differences between the amounts of assets and liabilities recorded for financial statement purposes and the underlying tax basis of those assets and liabilities, including amounts assigned to Hollywood's carryover tax attributes. The net impact of this resulted in a decrease to deferred tax assets by $13.1 million. Additionally, all acquisition transactions initiated after June 30, 2001, require the use of purchase accounting for financial reporting purposes. FAS 141 discusses purchase accounting and requires the price to be allocated to all assets acquired and liabilities assumed based on their fair market values. The excess purchase price is then allocated to goodwill and instead of being amortized, is tested for impairment each year. This leads us into the other major factor contributing to the net loss for 2005. It was a significant write-down of $523 million for goodwill and other intangible assets to fair market value in accordance with SFAS No. 142, "Goodwill and Other Intangible Assets". Since most acquisitions by the Company, including the Hollywood acquisition, are completed by acquiring the stock of the target company, the tax attributes of the target companies carry over to the Company.
Revenues of $10,161 million in the fiscal year ended December 2014 was seen by the organization, an increase of 5.3% over 2013.The company 's operating profit was $419 million in fiscal 2014, as compared to an operating loss of $22 million in 2013. Its net profit was $402 million in fiscal 2014, an increase of 34% over 2013 (Sutter Health, 2016).
Movies today are extremely expensive to make and are typically financed through either film studio contracts or from investors willing to take a risk. In order to be successful, movies need to be marketed and distributed either under contract by the film studios or by companies that specialize in such services. The aspects of financing, marketing and distribution of films have changed between the studio and independent systems over the years as the evolution of the film industry took place.
As can be seen in exhibit to solution 2, we have estimated the per-film value of each production company. MCA Universal, Warner Brothers and Walt Disney Co are the only production companies that provide a positive per film value, with values of 9.89, 1.92, 12.56 million respectively. This value is calculated by dividing the net present value of all the movies by the total number of movies. We also calculated the average value of each production company based upon their share of the total number of movies produced. The companies with positive values were MCA Universal, Warner Brothers and Walt Disney Co is also the only production companies that provide a positive per film value, with values of 1.40, 0.37, 1.40 million respectively. These values are based on the average value per film multiplied by the company's average share of the industry.
Under the accrual basis of accounting, expenses are matched with revenues on the income statement when the expenses expire or title has transferred to the buyer, rather than at the time when expenses are paid. The balance sheet is also affected at the time of the expense by a decrease in Cash (if the expense was paid at the time the expense was incurred), an increase in Accounts Payable (if the expense will be paid in the future), or a decrease in Prepaid Expenses (if the expense was paid in
In terms of CCC, AMC Entertainments (IMAX’s largest competitor) has the best CCC. In fact, when comparing with all the other competitors, IMAX has the highest CCC (which is not a good indication for operating cash flow). IMAX should aim to achieve negative CCC if they want to be successful in their BRIC expansion. If IMAX continues with the current CCC they will have to deal with potential operating cash flow issues. Cash flow problems can seriously hinder IMAX’s expansion process and lead to managing problems in the domestic markets. For IMAX the most optimum way to improve their CCC is to pay A/P slower; they can assert their strategic dominance with the suppliers and use this to their advantage to improve their CCC. Furthermore, they are also slower in collecting their A/R and this is dangerous. If IMAX’s accounting department is overloaded they should consider outsourcing collection of A/R account to a different
United States. This is a documentary about several children who live in poverty and dream of going to America in order to be reunited with their biological parents, or simply to seek out a better life for themselves. The way that the children are getting to America is by riding a train known as “La Bestia” (The Beast) throughout Mexico and ultimately arriving at the border with the United States. The children risk losing their lives every day, either by falling off the train as they sleep or getting kidnapped or raped by predators who are also trying to get to America. As you watch the film you are able to see every stop that is made through Mexico until finally
(1) Michel G. Rukstad, David Collis; The Walt Disney Company: The Entertainment King; Harvard Business School; 9-701-035; Rev. January 5, 2009
Eastman Kodak’s cash flow statement shows that cash has decreased every year except for in 2012 (Nasdaq, 2015). The reason for this is that the company sold $90,000 of their capital assets and also issued a large amount of debt (Nasdaq, 2015). In 2013 Kodak repaid $811,000 of their debt, this was different from any of the other years (Nasdaq, 2015). They may have done this since 2013 was the only year with a positive net income. Each year from 2011 to 2014 Kodak purchased capital assets (Nasdaq, 2015). Exchange rates had little effect on their cash flow until 2014 where it composed 42% of their total uses of cash.
amounts of equity (Disney and Government) as well as with subordinated debt (Government), Disney had
Damaged Movie Premier Write Up By: Paul McKenzie Local Indian film making talent Kabir Singh, gifted son of Sydney Indian local community identities Lucky and Balbir Singh, has done the Australian film scene proud. He co-wrote alongside the mutli-award-winning film director and writer, Summer Bodhi Nicks as well as acted in a leading role in the highly anticipated Australian film, “Damaged” which is produced by an Australian production company “Long Road Productions” and directed by first time director Maha Wilson. The film is largely flashback based and shows audiences exactly how Brendan, the main protagonist, came to end up in prison after a string of events from his childhood. Ultimately, Brendan’s path is a result of becoming involved
Private and public accounting has long been discussed and disputed in regards to financial reporting. Since the Financial Accounting Standards Board (FASB) was created in 1973, accountants have called for different accounting regulations for private and public accounting sectors, as private companies do not have the resources to meet the complex requirements of public companies. Private companies currently are not required by law to issue annual or quarterly financial statements (James, 2012). Private companies do, however, have the option to apply the U.S. Generally Accepted Accounting Principles (GAAP), cash basis, or accrual accounting to their financial statements (James, 2012).
From 1967 thru 1980, firms followed the comprehensive tax allocation procedures under APB Opinion #11 and reported deferred charges and credits. However, some problems arose from doing so. Because of the changes in tax rates and the nature of firm's investment, the balance of deferred tax credits on a firm's balance sheet began to grow in size instead of reversing and canceling out.
The FAS has made changes throughout the years in the way to account for goodwill. Goodwill is when a company attempts to merge with another company to obtain the valuable intangible assets. These assets are anything that can 't be seen or touched. Valuable intangibles can be anything like a company name because it is well known. Many times companies will decide to merge because it can be beneficial to them to merge with well-known entities. This can also be less costly and less time-consuming versus building a brand new business on its own. On many occasions, gooodwill is amortized on accounting records. Amortization is not the most favorable approach for companies who are trying to attract investors. This because when amortization is not present in the books, it means that there aren 't high physical cash profits for shareholders.
In addition, from their financial statements, it appears that they made substantial property purchases in 1995 ($126,000). These were financed them with their revolving loan. One can assume that this expense was a result of their significant increase in sales, but it is generally not a good cash management strategy to use short-term debt to buy long terms assets.
They acquire Movie link to better increase the hope that sales would increase their Gross profits without scorching the bottom line. The gross profit margin went up from 50.92 in 2005 to 51.4 in