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economic value added is NOT equal to 6954 , and return on capital is NOT equal to 5.91%, plz help with figuring out the right
economic value added is NOT equal to 6954 , and return on capital is NOT equal to 5.91%, plz help with figuring out the right answer
The following table gives abbreviated balance sheets and income statements for Walmart. At the end of fiscal 2017, Walmart had 2,970 million shares outstanding with a share price of $110. The company's weighted average cost of capital was about 5%. Assume a tax rate of 35%. Start of Year $ 6,887 5,855 43,066 1,961 $ 57,769 Balance Sheet (figures in $ millions) End of Year Assets Current assets: Cash and marketable securities $ 6,776 Accounts receivable 5,634 Inventories 43,803 Other current assets 3,531 Total current assets $ 59,744 Fixed assets: Net fixed assets $ 114,838 Other long-term assets 30,060 Total assets $ 204,642 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 46,112 Other current liabilities 32,449 Total current liabilities Long-term debt 36,845 Other long-term liabilities 11,327 Total liabilities $126,733 Total shareholders' equity 77,909 Total liabilities and shareholders' equity $ 204,642 $ 114,198 26,978 $198,945 $ 41,453 25,515 $ 66,968 42,038 12,101 $121,107 77,838 $198,945 Income Statement (figures in $ millions) Net sales $ 500, 363 Cost of goods sold 373,416 Selling, general, and administrative expenses 96,001 Depreciation 10,549 Earnings before interest and taxes (EBIT) $ 20,397 Interest expense 2,198 Taxable income $ 18,199 Tax ,600 Net income $ 13,599 Dividends ,144 Addition to retained earnings 7,455 $ 485,893 361,276 91,793 10,100 $ 22, 724 2,287 7,153 $ 13,284 6,715 $ 6,569 million c. Economic value added d. Return on capital The following table gives abbreviated balance sheets and income statements for Walmart. At the end of fiscal 2017, Walmart had 2,970 million shares outstanding with a share price of $110. The company's weighted average cost of capital was about 5%. Assume a tax rate of 35%. Start of Year $ 6,887 5,855 43,066 1,961 $ 57,769 Balance Sheet (figures in $ millions) End of Year Assets Current assets: Cash and marketable securities $ 6,776 Accounts receivable 5,634 Inventories 43,803 Other current assets 3,531 Total current assets $ 59,744 Fixed assets: Net fixed assets $ 114,838 Other long-term assets 30,060 Total assets $ 204,642 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 46,112 Other current liabilities 32,449 Total current liabilities Long-term debt 36,845 Other long-term liabilities 11,327 Total liabilities $126,733 Total shareholders' equity 77,909 Total liabilities and shareholders' equity $ 204,642 $ 114,198 26,978 $198,945 $ 41,453 25,515 $ 66,968 42,038 12,101 $121,107 77,838 $198,945 Income Statement (figures in $ millions) Net sales $ 500, 363 Cost of goods sold 373,416 Selling, general, and administrative expenses 96,001 Depreciation 10,549 Earnings before interest and taxes (EBIT) $ 20,397 Interest expense 2,198 Taxable income $ 18,199 Tax ,600 Net income $ 13,599 Dividends ,144 Addition to retained earnings 7,455 $ 485,893 361,276 91,793 10,100 $ 22, 724 2,287 7,153 $ 13,284 6,715 $ 6,569 million c. Economic value added d. Return on capitalStep by Step Solution
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