1.The percentage changes in prepaid expenses and other current assets jumped up 16.5% in fiscal 2014 and then fell by 35.2% in fiscal 2015. Did the changes in the dollar amounts of this account have a huge impact on total assets (see Exhibit 1.22)? Explain.2.During this three-year period, how did the proportion of total liabilities change relative to the proportion of shareholders' equity? What does this imply about changes in Wal-mart's leverage?

Exhibit 1.22 Wal-Mart Stores, Inc. Common-Size and Percentage Change Balance Sheets as of January 31 (allow for rounding) (Integrative Case 1.1) Common Size Percentage Change 2014 2015 2016 2015 2016 Assets: Cash and cash equivalents 3.6% 4.5% 4.4% 25.5% (4.7%) Accounts and notes receivable-net 3.3% 3.3% 2.8% 1.5% (17.0%) Inventories 21.9% 22.2% 22.3% 0.6% (1.5%) Prepaid expenses and other current assets 0.9% 1.1% 0.7% 16.5% (35.2%) Current assets of discontinued segments 0.2% 0.0% 0.0% (100.0%) na Current Assets 29.9% 31.1% 30.2% 3.4% (4.8%) Property, plant, and equipment-at cost 87.3% 89.8% 94.2% 2.2% 3.0% Accumulated depreciation (29.7%) (32.4%) (35.8%) 8.6% 8.4% Goodwill 9.5% 8.9% 8.4% (7.2%) (7.8%) Other assets 3.0% 2.7% 3.1% (11.3%) 12.4% Total Assets 100.0% 100.0% 100.0% (0.6%) (1.9%) Liabilities and Equities: Accounts payable 18.3% 18.9% 19.3% 2.79% 0.2% Current accrued expenses 9.2% 9.4% 9.8% 1.9% 2.4% Notes payable and short-term debt 3.7% 0.8% 1.4% (79.2%) 70.1% Current maturities of long-term debt 2.2% 2.5% 1.7% 15.1% (35.1%) Income taxes payable 0.5% 0.5% 0.3% 5.7% (49.0%) Current liabilities of discontinued operations 0.0% 0.0% 0.0% (100.0%) na Current Liabilities 33.9% 32.1% 32.4% (5.9%) (1.0%) Long-term debt obligations 21.8% 21.4% 22.1% (2.4%) 1.2% Deferred tax liabilities-noncurrent 3.9% 4.3% 3.7% 9.8% (16.9%) Redeemable noncontrolling interest 0.7% 0.0% 0.0% (100.0%) 0.0% Total Liabilities 60.3% 57.8% 58.1% (4.7%) (1.3%) Common stock + Additional paid-in capital 1.3% 1.4% 1.1% 3.7% (23.8%) Retained earnings 37.4% 42.2% 45.1% 12.0% 4.9% Accum. other comprehensive income (loss) (1.5%) (3.5%) (5.8%) 139.3% 61.8% Total Common Shareholders' Equity 37.2% 40.0% 40.4% 6.7% (1.0%) Noncontrolling interests 2.5% 2.2% 1.5% (10.6%) (32.5%) Total Equity 39.7% 42.2% 41.9% 5.7% (2.7%) Total Liabilities and Equities 100.0% 100.0% 100.0% (0.6%) (1.9%) Source: Wal-Mart Stores, Inc. Forms 10-K for the three fiscal years ended January 31, 2014, 2015, and 2016