Wal-Mart
The 2006 Form 10-K for Wal-Mart is included in Appendix A. Locate that Form 10-K and
consider the following questions:
1. Examine Wal-Mart’s balance sheet as of January 31, 2006. What percent of the increase
in Wal-Mart’s total assets from 2005 to 2006 was financed with an increase in the company’s
long-term debt?
2. Compute Wal-Mart’s debt ratio for 2006 and 2005. Is the ratio increasing or decreasing?
Identify the primary reason for the change.