1. Compute the values of each of the ratios in Exhibit 5.26 for Walmart for 2020. Walmart had 2,821 million common shares outstanding at the end of fiscal 2020, and the market price per share was $140.49. For 2019, the comparable shares and price per share were 2,832 million and $114.49, and for 2018, they were 2,878 million and $95.83, respectively. Notes: For days accounts receivable outstanding, use total revenues in your calculations. For computations with interest expense, exclude interest income but include imputed interest expense on average operating lease liabilities (current and long-term); Walmart discloses an implicit interest rate of 6.1% on operating leases. For the interest coverage ratio (cash flow basis), ignore imputed interest for operating leases (as done in the text). For earnings before interest and taxes in the Altmans Z calculation, include interest income in earnings before interest and taxes.

2. Interpret the changes in Walmarts risk ratios during the three-year period, indicating any areas of concern.

Exhibit 1.19Walmart, Inc. Balance Sheets (Amounts in Millions; Allow for Rounding) (Integrative Case 1.1)

Exhibit 1.20Walmart, Inc. Income Statements (Allow for Rounding) (Integrative Case 1.1)

Exhibit 1.21Walmart, Inc. Consolidated Statements of Comprehensive Income

Exhibit 1.22Walmart, Inc. Statements of Cash Flows for the (Amounts in Millions; Allow for Rounding) (Integrative Case 1.1)

Exhibit 1.24Walmart Stores, Inc. Common-Size and Percentage Change Income Statements (Amounts in Millions, Except per Share Data; Allow for Rounding) (Intergrative Case 1.1)

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Exhibit 1.19 Walmart, Inc. Balance Sheets (Amounts in Millions; Allow for Rounding) (Integrative Case 1.1) 2018 2019 2020 ASSETS Current assets: Cash and cash equivalents Receivables, net Inventories Prepaid expenses and other Total current assets $ 7,722 6,283 44,269 3,623 $ 61,897 $ 9,465 6,284 44435 1,622 $ 61,806 $ 17,741 6,516 44,949 20,861 $ 90,067 104,317 7,078 31,181 14,822 $219.295 105,208 17,424 4417 31,073 16,567 $236.495 92,201 13,642 4,005 28,983 23,598 $252,496 Property and equipment, net Operating lease right-of-use assets Finance lease right-of-use assets, net Goodwill Other long-term assets TOTAL ASSETS LIABILITIES AND EQUITY Current liabilities: Short-term borrowings Accounts payable Accrued liabilities Accrued income taxes Long-term debt due within one year Operating lease obligations due within one year Finance lease obligations due within one year Total current liabilities Long-term debt Long-term operating lease obligations Long-term finance lease obligations Deferred income taxes and other Commitments and contingencies Equity: $ 5,225 47,060 22,159 428 1876 $ 575 46973 22,296 280 5,362 1,793 511 $ 77,790 43,714 16,171 4,307 12,961 $ 224 49,141 37,966 242 3.115 1,466 491 $ 92,645 729 $ 77,477 43,520 41,194 12,909 3,847 14,370 6,683 11,981 Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive loss Total Walmart shareholders' equity Noncontrolling interest Total equity TOTAL LIABILITIES AND EQUITY 288 2.965 80.785 (11,542) $ 72,496 7,138 $ 79,634 $219,295 284 3,247 83.943 (12,805) $ 74,669 6,883 $ 81,552 $236,495 282 3,646 88,763 (11,766) $ 80,925 6,606 $ 87,531 $252,496 Exhibit 1.20 Walmart, Inc. Income Statements (Allow for Rounding) (Integrative Exhibit 5.26 Walmart Risk Ratios (Integrative Case 5.1) 2020 2019 0.79 2018 0.80 0.18 0.20 0.36 Current ratio Quick ratio Operating cash flow to current liabilities ratio Accounts receivable turnover Days accounts receivable outstanding Inventory turnover Days inventory held Accounts payable turnover Days accounts payable outstanding Net days of working capital financing needed Liabilities to total assets ratio Liabilities to shareholders'equity ratio Long-term debt to long term capital ratio Long-term debt to shareholders' equity ratio Interest coverage ratio (net income basis) Interest coverage ratio (cash flow basis) Altman's Z-score Probability of bankruptcy Altman's Z components: Networking capital/TA Retained earnings/TA EBIT/TA MVE/BV Liabilities Sales/TA 0.33 83.39 4.38 8.90 41.02 8.90 4101 8641 0.66 1.90 044 0.79 7.39 12.72 4.20 0.07% 86.48 4.22 8.75 41.71 8.76 41.65 87.58 0.64 1.75 0.39 0.63 5.88 14.52 4.17 0.08% -0.07 0.35 0.10 2.09 2.22 4.20 -0.07 0.37 0.06 1.97 2.35 4.17 Shares end of year (millions) Price per share end of year MV 2,821 $ 140.49 $396,322 2,832 $ 11449 $324,236 2,878 $ 95.83 $275,799 Exhibit 1.19 Walmart, Inc. Balance Sheets (Amounts in Millions; Allow for Rounding) (Integrative Case 1.1) 2018 2019 2020 ASSETS Current assets: Cash and cash equivalents Receivables, net Inventories Prepaid expenses and other Total current assets $ 7,722 6,283 44,269 3,623 $ 61,897 $ 9,465 6,284 44435 1,622 $ 61,806 $ 17,741 6,516 44,949 20,861 $ 90,067 104,317 7,078 31,181 14,822 $219.295 105,208 17,424 4417 31,073 16,567 $236.495 92,201 13,642 4,005 28,983 23,598 $252,496 Property and equipment, net Operating lease right-of-use assets Finance lease right-of-use assets, net Goodwill Other long-term assets TOTAL ASSETS LIABILITIES AND EQUITY Current liabilities: Short-term borrowings Accounts payable Accrued liabilities Accrued income taxes Long-term debt due within one year Operating lease obligations due within one year Finance lease obligations due within one year Total current liabilities Long-term debt Long-term operating lease obligations Long-term finance lease obligations Deferred income taxes and other Commitments and contingencies Equity: $ 5,225 47,060 22,159 428 1876 $ 575 46973 22,296 280 5,362 1,793 511 $ 77,790 43,714 16,171 4,307 12,961 $ 224 49,141 37,966 242 3.115 1,466 491 $ 92,645 729 $ 77,477 43,520 41,194 12,909 3,847 14,370 6,683 11,981 Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive loss Total Walmart shareholders' equity Noncontrolling interest Total equity TOTAL LIABILITIES AND EQUITY 288 2.965 80.785 (11,542) $ 72,496 7,138 $ 79,634 $219,295 284 3,247 83.943 (12,805) $ 74,669 6,883 $ 81,552 $236,495 282 3,646 88,763 (11,766) $ 80,925 6,606 $ 87,531 $252,496 Exhibit 1.20 Walmart, Inc. Income Statements (Allow for Rounding) (Integrative Exhibit 5.26 Walmart Risk Ratios (Integrative Case 5.1) 2020 2019 0.79 2018 0.80 0.18 0.20 0.36 Current ratio Quick ratio Operating cash flow to current liabilities ratio Accounts receivable turnover Days accounts receivable outstanding Inventory turnover Days inventory held Accounts payable turnover Days accounts payable outstanding Net days of working capital financing needed Liabilities to total assets ratio Liabilities to shareholders'equity ratio Long-term debt to long term capital ratio Long-term debt to shareholders' equity ratio Interest coverage ratio (net income basis) Interest coverage ratio (cash flow basis) Altman's Z-score Probability of bankruptcy Altman's Z components: Networking capital/TA Retained earnings/TA EBIT/TA MVE/BV Liabilities Sales/TA 0.33 83.39 4.38 8.90 41.02 8.90 4101 8641 0.66 1.90 044 0.79 7.39 12.72 4.20 0.07% 86.48 4.22 8.75 41.71 8.76 41.65 87.58 0.64 1.75 0.39 0.63 5.88 14.52 4.17 0.08% -0.07 0.35 0.10 2.09 2.22 4.20 -0.07 0.37 0.06 1.97 2.35 4.17 Shares end of year (millions) Price per share end of year MV 2,821 $ 140.49 $396,322 2,832 $ 11449 $324,236 2,878 $ 95.83 $275,799