1. Did Wal-Mart report an asset for its capital lease on January 31, 2015 balance sheet? By how much?

2. Assuming an interest rate of 5%, compute the present value of the operating lease commitments on January 31, 2015. Show all calculations for credit.

3. Calculate the Liabilities to Assets ratio and Long-term Debt Ratio for Wal-Mart as of January 31, 2015, using the amounts originally reported in its balance sheet for the year.

4. Assuming that Wal-Mart was required to capitalize its operating lease, calculate the companys 2015s Liabilities to Assets ratio and Long-term Debt Ratio.

5. Comment on the results from part 6 and 7.

As of January 31, 2014 (Amounts in millions) ASSETS Current assets: 2015 Cash and cash equivalents Receivables, net Inventories Prepaid expenses and other Current assets of discontinued operations 9,135S 6,677 44,858 1,909 460 61,185 6,778 45,141 2,224 Total current assets 63,278 Property and equipment Property and equipment Less accumulated depreciation 177,395 (63,115) 114,280 173,089 (57,725) 115,364 Property and equipment, net Property under capital leases: 5,239 (2,864) 2,375 5,589 (3,046) 2,543 Property under capital leases Les s accumulated amortization Property under capital leases, net Goodwill Other assets and deferred charges Total assets 19,510 6,149 204,751 18,102 5,671 203,706 S LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY Current liabilities: 7,670 37,415 18,793 Short-term borrowings Accounts payable Accrued liabilities Accrued income taxes Long-term debt due within one year Obligations under capital leases due within one year Current liabilities of discontinued operations 1,592S 38,410 19,152 1,021 4,810 287 4,103 89 Total current liabilities 65,272 69,345 Long-term debt Long-term obligations under capital leases Deferred income taxes and other 41,086 2,606 8,805 41,771 2,788 Redeemable poncontrolling interest Commitments and contingencies ul Common stock Capital in excess of par value Retained earnings 323 2,462 85,777 323 2,362 76,566