Disnay was able to show positive cash flow in the most recent quarter because of a change in Accounts Receivable of $1.5 billion. In the previous quarter, there was a negative change in Accounts Receivable of $2 billion, and Disnay showed negative cash flow for the quarter of $256 million.
Sounds like a wash to me, which is very disturbing considering that Disnay owes $16 billion debt, $5.4 billion accounts payable, and $2.3 billion deferred tax. Disnay's cash, at $3.86 billion, is not growing fast enough to pay what it owes.
Plus, what about potential problems in the future?
Will Disnay be sued over the lead in the sleeping bags and toy wands they sold that were used by children?
Will Disnay be sued over Staggs the Slicer and Butthead Braverman dumping of 240,000 free shares on baholders' heads? The Associated Press even commented on the unusal timing of the sales before Snornia was released. (and the 33 million share seconday offering and the recall of the sleeping bags and toy wands and the heavy competition from Universal's Krustyland and Indiana Jones and Sex and the City and the other tv networks and the tough comps for Q3 and Q4).