Access the EDGAR archives (www.sec.gov/edaux/searches.htm) and locate the most recent 10-K filing by Kmart. Information about Kmart’s pension plan can be found in the Notes to the Financial Statements.

Required

a. What are the total pension assets and liabilities?

b. What is the funding status of the pension plan?

c. What discount rate and average rate of return have been adopted by the company?

d. Identify total assets and total debt as reported on the balance sheet and calculate the debt-to-assets ratio.Then, including all retirement plan-related assets and liabilities, recalculate the values of total assets, total liabilities, and the debt-to-assets ratio.What do you observe?

e. Now examine the latest 10-K for Wal-Mart (available at EDGAR).Should you make the same adjustments for Wal-Mart that you made for Kmart? State your reasons.