UEI College Gardena Campus Business Office Administration Accounting Principles MOD 110 Instructor: Frank Ezenekwe, MBA

Accounting Capstone Project

By Brianna Cooper

Introduc)on  

Part 1. You are the chief investment officer at financial company in Los Angeles and some new investors have approached you with a proposal to invest $10 million dollars in their current portfolio. Select three fortune 500 companies and compile their financial statements for your investors and recommend their best long term and short term options. The financial statement must include statistical analysis (graphs, bar charts or pie charts) to illustrate your presentation on ISSUU.COM   Part 2. Prepare a short summary to explain your strategic investment decision and explain to your client (classmates) why they should accept and trust your choices. This will be a live presentation In my accounting project, I will be investigating as well as analyzing three fortune 500 companies in order to show investors which companies have shown either progress or stability within their financial statements.

For  more  than  nine  decades,  the  name  Walt  Disney  has  been  preeminent  in  the  field  of  family  entertainment.  From  humble  beginnings  as  a  cartoon  studio  in  the  1920s  to  today's  global  corpora)on,  The  Walt  Disney  Company  con)nues  to  proudly  provide  quality  entertainment  for  every  member  of  the  family,  across  America  and  around  the  world.    

2014   2013   2012   2011  

Total  Revenue  $48,813,000 $45,041,000 $42,278,000 $40,893,000

Total  Net  Income    $7,501,000 $6,136,000 $5,682,000 $4,807,000

Total  Assets  $84,186,000 $81,241,000 $74,898,000 $72,124,000

Total  Liabili)es  $39,228,000 $35,812,000 $35,139,000 $34,739,000

Graphs  

DreamWorks  Studios  is  a  mo)on  picture  company  formed  by  partners  Steven  Spielberg  and  The  Reliance  Anil  Dhirubhai  Ambani  Group.  The  studio  currently  has  a  worldwide  distribu)on  deal  with  The  Walt  Disney  Studios,  which  markets  and  distributes  their  films.    DreamWorks  Studios  was  originally  founded  in  1994  by  Spielberg,  Jeffrey  Katzenberg,  and  David  Geffen.  One  of  the  studio’s  first  forays  into  the  entertainment  marketplace  was  the  long-­‐running  sitcom  “Spin  City.”  Under  the  direc)on  of  Walter  Parkes  and  Laurie  MacDonald  (1994-­‐2005),  the  co-­‐heads  of  the  mo)on  picture  division,  DreamWorks  released  its  first  feature  film  in  September  1997—the  ac)on  thriller  "The  Peacemaker,"  starring  George  Clooney  and  Nicole  Kidman.  This  was  followed  by  Spielberg's  first  film  for  the  studio,  "Amistad,"  which  was  nominated  for  four  Academy  Awards™,  including  Anthony  Hopkins  for  Best  Suppor)ng  Actor.  Spielberg  also  received  his  eighth  Directors  Guild  of  America  (DGA)  nomina)on  for  “Amistad.”  

2014   2013   2012   2011  Total  Revenue   684,623   $706,916     $749,842     $706,023    Total  Net  Income   ($309,614)   $55,084     ($36,422)   $86,801    Total  Assets   $1,968,710    $2,274,228     $1,944,892     $1,778,913    Total  Liabili)es   $812,353     $869,433     $599,276     $422,217    

640,000  

660,000  

680,000  

700,000  

720,000  

740,000  

760,000  

2014   2013   2012   2011  

Total  Revenue  

($350,000)  ($300,000)  ($250,000)  ($200,000)  ($150,000)  ($100,000)  ($50,000)  

$0    $50,000    $100,000    $150,000    

1   2   3   4  

Total  Net  Income  

Total  Net  Income  

$0    $1,000,000    $2,000,000    

Total  Assests  

2011  

2012  

2013  

2014  

After researching other motion picture companies, I have come to the realization that it would not be wise to attempt to invest in a third company. I came to this conclusion dually because the first two companies I selected are so big that there is not real competition. Also these two companies, are known for making movies while collaborating with smaller motion picture companies.

Lastly, the best decision would be to invest for a long term goal 8 million dollars in the Walt Disney Company because based on the last 4 years they have maintained a constant minimum of 1 million dollars at the end of each year. I would invest to remaining 2 million dollars in Dreamworks for a short term goal. Dreamworks during the years of 2012 and 2014 were owing money which causes a concern for those whom would like to get more bang for their buck.