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The following selected data was retrieved from the Walmart, Inc. financial statements for the year




Question;The following selected data was retrieved from the Walmart, Inc. financial statements for the year ending January 31, 2013: Accounts Payable $38,080 Accounts Receivable 6,768 Cash 7,781 Common Stock 3,952 Cost of Goods Sold 352,488Income Tax Expense 7,981Interest Expenses 2,064 Membership Revenues 3,048 Net Sales 466,114 Operating, Selling and Administrative Expenses 88,873 Retained Earnings 72,978 Required: Using the information provided above: 1. Prepare a multiple-step income statement 2. Calculate theProfit Margin, and Gross profit rate for the company. Be sure to provide the formula you are using, show your calculations, and discuss your findings/results. (TCO C) Please review the following real-world Hewlett Packard Statement of Cash flows and addressthe two questions below: Cash flow from operating activities In millions In millions For the year ended 2012 For the year ended 2011 Net (loss) earnings $(12,650) $7,074 Depreciation and amortization 5,095 4,984 Impairment of goodwill and purchased intangibleassets 18,035 885 Stock-based compensation expense 635 685 Provision for doubtful accounts 142 81 Provision for inventory 277 217 Restructuring charges 2,266 645 Deferred taxes on earnings (711) 166 Excess tax benefit from stock-based competition (12) (163)Other, net 265 (46) Accounts and financing receivables 1,269 (227) Inventory 890 (1,252) Accounts payable (1,414) 275 Taxes on earnings (320) 610 Restructuring (840) (1,002) Other assets and liabilities (2,356) (293) Net cash provided by operating activities10,571 12,639 Cash flows from investing activities: Investment in property, plant, and equipment (3,706) (4,539) Proceeds from sale of property, plant, and equipment 617 999 Purchases of available-for-sale securities and other investments (972) (96) Maturitiesand sales of available-for-sale securities and other investment 662 68 Payments in connection with business acquisitions, net of cash acquired (141) (10,480) Proceeds from business divestiture, net 87 89 Net cash used in investing activities (3,453) (13,959)Cash flow from financing activities: (Payments) issuance of commercial paper and notes payable, net (2,775) (1,270) Issuance of debt 5,154 11,942 Payment of debt (4,333) (2,336) Issuance of common stock under employee stock plans 716 896 Repurchase of commonstock (1,619) (10,117) Excess tax benefit from stock-based compensation 12 163 Cash dividends paid (1,015) (844) Net cash used in financing activities (3,860) (1,566) Increase (decrease) in cash and cash equivalents 3,258 (2,886) Cash and cash equivalentsat beginning of period 8,043 10,929 Cash and cash equivalents at end of period $11,301 $8,043 Required: 1) Please calculate the percentage increase or decrease in cash for the total line of the operating, investing, and financing sections bolded above andexplain the major reasons for the increase or decrease for each of these sections. 2) Please calculate the free cash flow for 2012 and explain the meaning of this ratio. (TCO F) Please review the following real-world ratios for Johnson & Johnson and Pfizerfor the year ended 2012 and address the 2 questions below. Ratio Name Johnson & Johnson Pfizer Profit margin 16.1% 24.7% Inventory turnover ratio 3.1 1.7 Average collection period 59.4 days 69.1 days Cash debt coverage ratio.27.16 Debt to Total assets 46.67.5% Required: 1) Please explain the meaning of each of the Pfizer ratios above. 2) Please state which company performed better for each ratio.


Paper#37907 | Written in 18-Jul-2015

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