Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

answer the following questions. Refer to financial statements for Walmart in Exhibit 1.19 (Balance Sheets), Exhibit 1.20 (Statements of Income), and Exhibit 1.22 (Statement of

answer the following questions.
image text in transcribed
Refer to financial statements for Walmart in Exhibit 1.19 (Balance Sheets), Exhibit 1.20 (Statements of Income), and Exhibit 1.22 (Statement of Cash Flows). REQUIRED a. Explain why depreciation and amortization appear as an addition when net income is converted to cash flow from operations. b. For 2020 , Walmart shows an adjustment for inventories of negative $2,395 million. However, on the balance sheet, inventories increased from $44,435 million to $44,949 million, a difference of $514 million. Explain the $2,395 million adjustment in the operating section of the statement of cash flows and offer examples of why the adjustment might differ from the change in the inventory balance. c. Estimate the amount of cash received from customers during 2020. d. Discuss the relation between net income and cash flow from operations for each of the three years. e. Discuss the relations among cash flows from operating, investing, and financing activities for each of the three years

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing and Assurance Services An Applied Approach

Authors: Iris Stuart

1st edition

73404004, 978-0073404004

More Books

Students also viewed these Accounting questions

Question

Respond to a neutral message.

Answered: 1 week ago