3 The following is an extract from Walmart Inc.'s cashflow statement showing the cashflow generated by operations: Walmart Inc. Consolidated Statements of Cash Flows Fiscal Years Ended January 31, (Amounts in millions) 2020 2019 2018 Cash flows from operating activities: Consolidated net income S 15,201 S 7,179 S 10,523 Adjustments to reconcile consolidated net income to net cash provided by operating activities: Depreciation and amortization 10,987 10,678 10,529 Unrealized (gains) and losses (1,886) 3,516 Gains) and losses for disposal of business operations 15 4,850 Asda pension contribution (1,036) Deferred income taxes 320 (499) (304) Loss on extinguishment of debt 3,136 Other operating activities 1,981 1,734 ,210 Changes in certain assets and liabilities, net of effects of acquisitions: Receivables, net 154 (368) (1,074) Inventories (300) (1,311) (140) Accounts payable (274) 1,831 4,086 Accrued liabilities 186 183 928 Accrued income taxes (93 ) (40) (557) Net cash provided by operating activities 25,255 27,753 28,337 REQUIRED: (a) Using the information above and, if needed, the income statement information from Question 1, calculate the cash conversion ratio for each year; [3 Marks] (b) Briefly comment on what is revealed by your cash conversion calculations. [3 marks] (c) Explain the rationale for the following adjustments to profit in the calculation of cash generated by operating activities for each year shown above: (i) (Gains) and losses for the disposal of business operations; (ii) The inventories adjustment. [6 marks] (d) Looking only at the period to 31 January 2020, assume that the opening balance of PP&E of Walmart Inc. was (in millions) $192,365 and the closing balance for the same period was $246,203. Calculate what amount Walmart Inc. incurred for capital expenditure in the most recent year. Assume no disposals and zero amortisation on intangibles and that all depreciation relates to PP&E. [4 marks] (e) Explain why exploring both measures of cash and profit can reveal meaningful information to investors