Answered step by step
Verified Expert Solution
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.
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started