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(TCO B) The following selected data was retrieved from the Walmart, Inc. financial statements




Question;Question 2. 2.;(TCO B) The;following selected data was retrieved from the Walmart, Inc. financial;statements for the year ending January 31, 2013;Accounts;Payable;$38,080;Accounts;Receivable;6,768;Cash;7,781;Common;Stock;3,952;Cost;of Goods Sold;352,488;Income;Tax Expense;7,981;Interest;Expenses;2,064;Membership;Revenues;3,048;Net;Sales;466,114;Operating;Selling and Administrative Expenses;88,873;Retained;Earnings;72,978;Required;Using the information provided above;1. Prepare a multiple-step income statement;2. Calculate the Profit Margin, and Gross profit rate for the company.;Be sure to provide the formula you are using, show your calculations, and;discuss your findings/results.;(Points: 36);Question 3. 3.(TCO C) Please review the;following real-world Hewlett Packard Statement of Cash flows and address the;two questions below;Cash;flow from operating activities;In millions;In millions;For;the year ended 2012;For;the year ended 2011;Net;(loss) earnings;$(12,650);$7,074;Depreciation;and amortization;5,095;4,984;Impairment;of goodwill and purchased intangible assets;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 activities;10,571;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);Maturities;and 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 common stock;(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 equivalents at 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 and explain 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.;(Points: 36);Question 4. 4.(TCO D) You are CFO of Goforit;Inc., a wholesale distribution company specializing in emerging technologies.;Your CEO is a brilliant marketer, but relies on you to explain issues and;choices in accounting and finance. She has heard from other members of a CEO;organization to which she belongs that a company?s net income can vary widely;depending on which accounting choices are made from the ?GAAP;menu.? Assuming the goal is to maximize net income, choose an;accounting treatment from each of the following scenarios, and explain to;your CEO why the choice will produce the desired effect on reported Net;Income for the current year. Include in your answer the effect of the choice;on both the income statement and balance sheet.;Required;a.;Goforit carries significant electronics inventory in a competitive;environment in which prices are actually falling. Which inventory valuation;method would you choose?LIFO, FIFO, or average cost? Assume that unit;purchases exceed unit sales.;b. Goforit has a large investment in warehouse equipment, including;conveyor belts, forklifts, and automated packaging systems. Which;depreciation method would you choose: straight line (SL) or double declining;balance (DDB)?;(Points: 36);Question 5. 5.(TCO F) Please review the;following real-world ratios for Johnson & Johnson and Pfizer for 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;46.6%;127.5%;Required;1);Please explain the meaning of each;of the Pfizer ratios above.;2);Please state which company;performed better for each ratio.


Paper#47692 | Written in 18-Jul-2015

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