Walmart Inc. (NYSE: WMT) has a fiscal year end of January 31. To follow are its statements of cash flows for the fiscal years 2019–2021.

RequirementsUsing its statements of cash flows, answer the following questions about Walmart:a. Is Walmart generating cash from its operations?b. Describe what investing activities Walmart has been involved in over the past three years. Are investing activities an overall source or use of funds for Walmart?c. What financing activities has Walmart been undertaking in the past three years? Has it been paying dividends to its common stockholders? Has it been purchasing its own stock back?d. Why do you think Walmart has a fiscal year-end of January 31 rather than using a calendar year-end of December 31?

Transcribed Image Text:

1 2 3 4 5 6 Operating activities: 7 Net income (loss) A 8 Adjustments to convert to cash basis 9 Net cash provided by operations 10 11 Investing activities: 12 Purchases of PP&E 13 Proceeds from disposal of PP&E 14 Proceeds from disposal of some ops 15 Payments for business acquisitions 16 Other investing activities 17 Net cash used by investing 18 19 Financing activities: 20 Net change in borrowings 21 Proceeds from issuance of debt 22 Repayments of long-term debt 23 Dividends paid Walmart Inc. Statement of Cash Flows (in millions) 24 Purchase of company stock 25 Dividends paid to noncontrolling interest 26 Other financing activities 27 Net cash provided (used) by financing 28 Effect of exchange rates 29 Net change in cash 30 Cash and cash equivalents at beginning of year 31 Cash and cash equivalents at end of year 32 Fiscal Years Ended January 31, 2020 2021 13,706 22,368 36,074 (10,264) 215 56 (180) 102 (10,071) (324) (5,382) (6,116) (2,625) (434) (1,236) (16,117) 235 10,121 7,667 17,788 15,201 10,054 25,255 (10,705) 321 833 (56) 479 (9,128) (4,656) 5,492 (1,907) (6,048) (5,717) (555) (908) (14,299) (69) 1,759 7,756 9,515 2019 7,179 20,574 27,753 (10,344) 519 876 (14,656) (431) (24,036) (53) 15,872 (3,784) (6,102) (7,410) (431) (629) (2,537) (438) 742 7,014 7,756