Accessthe Internet to acquire a copy of the most recent annual report for the publicly traded company used to complete the Financial Reporting Problem, Part 1 assignment due in Week Six.

Analyzethe information contained in the company's balance sheet and income statement to answer the following questions:

• Are the assets included under the company's current assets listed in the proper order? Explain your answer.
• How are the company's assets classified?
• What are cash equivalents?
• What are the company's total current liabilities at the end of its most recent annual reporting period?
• What are the company's total current liabilities at the end of the previous annual reporting period?
• Considering all the information you have gathered, why might this information be important to potential creditors, investors, and employees?

Summarizethe analysis in a 700- to 1,050-word paper in a Microsoft Word document.

Financial Reporting Problem Running head: FINANCIAL REPORTING PROBLEM Financial Reporting Problem Lupe Flores March 13, 2016 XACC/290 1 Financial Reporting Problem 2 Financial Reporting Problem, Part 1 The company's annual report is important because it gives the shareholders a clear picture and understanding about how the company is doing financially. The annual reports provide thorough information on very significant section of the accounts, such as the balance sheet, the income statement, and the cash flow statement. The information presented in the annual report would also be essential to potential investor, employee, and any other people that may have interest in financial aspect of the business. Walmart is one of biggest international corporations all over the world. According to the Fortune Global 500 in the year of 2014, Walmart is the one biggest public company. Walmart serves millions of customers in 27 countries. Walmart's total assets at the end of its most recent annual reporting period are 204,751,000.00 dollars. Total assets states the total amount of assets owned by a company. This information is important because it demonstrate what the company owns and how the company has grown over the years. It gives an understanding of the financial condition of the company, and how well they are doing, or have not done over the time frame. This information shows the financial worth of a company, whether those assets are long term or short term, cash or property. It is also important to a variety of people, including the finance department, investors, potential investors, the board of directors, and the CEO. The total assets at the end of the previous annual reporting period were 203,105,000,000.00 dollars which is less than it was in the last annual reporting period. The financial worth of the company grew 1,646,000,000.00 dollars in one year. Cash and cash equivalents are the most liquid assets found on the company's balance sheet. Cash and cash equivalents are either cash or assets that are readily convertible into cash. Financial Reporting Problem 3 Cash and cash equivalents are: currency, coins, checks and money orders received from customers, petty cash, savings accounts, checking accounts, money market accounts, and short term, highly liquid investments with maturity dates no longer than three months from the date of purchase such as U.S. treasury bills. This includes shortterm investments, accounts and notes receivable, inventories and prepaid expenses, and other current assets. This represents the company's liquidity. At the end of their most recent annual reporting period Walmart had 7,281,000,000.00 dollars, which is less than the previous year. The more of the above that the company has access to what gives them a high risk of success because management can use the money to carry through tough periods. All accounts payable are the debts owed by the company to various vendors for products and services purchased on credit, it is an accountability to a supplier or vendor for services or products that were delivered in advance of payment. If the company will not pay accounts payable within the payment terms agreed to with the supplier, the payables are considered to be in default, and that can cause a fine or interest payment, or the cancelation or restriction of additional credit from the supplier. This is one of the largest current liabilities because of the fact the companies are constantly ordering new products or paying vendors for services or merchandise. According to Walmart's annual report at the end of its most recent annual reporting period the company had 37,415,000,000.00 dollars in account payable. The year before that Walmart had 38,080,000,000.00 dollars in account payable. In 2014 the revenue of Walmart was 476,294,000,000.00 dollars. In 2013 Walmart's revenue was 468,651,000,000.00 dollars, and in 2012 Walmart reported that their revenue was 446,509,000,000.00 dollars. Walmart's revenue has been growing every year. Financial Reporting Problem 4 The net income of a company is the income after all expenses and taxes have been deducted. Net income is often referred to as the bottom line, because it is found on the last line of the income statement. Net incomes are proceeds from a sale of an asset, minus the commissions, taxes, and other expenses related to the sale. Net income in the most recent annual reporting period was 16,695,000,000.00 dollars, and in a previous annual reporting period it was 17,756,000,000.00 dollars. The change in dollars in the company's net income from its most recent annual reporting period to the previous annual reporting period is negative 1,061,000,000.00 dollars. As shown, there was a big decrease in net income between 2013 and 2014. Net income is one of the most important signs of a business' financial stability. The net income is generally the amount remaining after the expenses have been met or deducted. This is known as the bottom line because it is found on the last line of the income statement. Cash equivalents are investments with maturities of three months or less. Net receivables are the amount due from customers or clients within one year on the balance sheet date. The inventory will include the raw materials, work in process, and finished goods. They value these at the lower to cost or market. A current asset is cash or any assets that can be reasonably transformed to cash within one year. \"Current assets are also referred to as short term assets\