Exhibit 1.22 presents common-size and percentage change balance sheets and Exhibit1.23 presents common-size and percentage change income statements for Walmart for fiscal years ended January 31, 2014, 2015, and 2106. The percentage change statements report the annual percentage change in each account from fiscal 2013 to 2014, and from fiscal 2014 to 2015.

1. The percentage changes in prepaid expenses and other current assets jumped up 16.5% in fiscal 2014 and then fell by 35.2% in fiscal 2015. Did the changes in the dollar amounts of this account have a huge impact on total assets (see Exhibit1.22)? Explain.
2. During this three-year period, how did the proportion of total liabilities change relative to the proportion of shareholders equity? What does this imply about changes in Walmarts leverage?
3. How did net income as a percentage of total revenues change from fiscal 2013 to fiscal 2015? Identify the most important reasons for this change.
4. Does Walmart generate high or low profit margins? How do Walmarts profit margins relate to the companys strategy?

Exhibit 1.22 Wal-Mart Stores, Inc. Common-Size and Percentage Change Balance Sheets as of January 31 (allow for rounding) (Integrative Case 1.1) 1.1% 0.7% na 19.3% 0.2% 9.2% Common Size Percentage Change 2014 2015 2016 2015 2016 Assets: Cash and cash equivalents 3.6% 4.5% 4.4% 25.5% (4.7%) Accounts and notes receivable-net 3.3% 3.3% 2.8% 1.5% (17.0%) Inventories 21.9% 22.2% 22.3% 0.6% (1.5%) Prepaid expenses and other current assets 0.9% 16.5% (35.2%) Current assets of discontinued segments 0.2% 0.0% 0.0% (100.0%) Current Assets 29.9% 31.1% 30.2% 3.4% (4.8%) Property, plant, and equipment-at cost 87.3% 89.8% 94.2% 2.2% 3.0% Accumulated depreciation (29.7%) (32.496) (35.8%) 8.6% 8.4% Goodwill 9.5% 8.9% 8.4% (7296) (7.8%) Other assets 3.0% 2.7% 3.1% (11.396) 12.4% Total Assets 100.0% 100.0% 100.0% (0.6%) (1.9%) Liabilities and Equities: Accounts payable 18.3% 18.99 2.7% Current accrued expenses 9.4% 9.8% 1.9% 2.4% Notes payable and short-term debt 3.7% 0.8% 1.4% (79296) 70.1% Current maturities of long-term debt 2.2% 2.5% 1.7% 15.1% (35.1%) Income taxes payable 0.5% 0.5% 0.3% 5.7% (49.0%) Current liabilities of discontinued operations 0.0% 0.0% 0.0% (100.0%) Current Liabilities 33.9% 32.1% 32.4% (5.9%) (1.0%) Long-term debt obligations 21.8% 21.4% 22.1% (2.4%) 1.2% Deferred tax liabilities-noncurrent 3.9% 4.3% 3.7% 9.8% (16.9%) Redeemable noncontrolling interest 0.7% 0.0% 0.0% (100.0%) 0.0% Total Liabilities 60.3% 57.8% 58.1% (4.7%) (1.3%) Common stock + Additional paid-in capital 1.3% 1.4% 1.1% 3.7% (23.8%) Retained earnings 37.4% 42.29 45.1% 12.0% 4.9% Accum. other comprehensive income (loss) (1.5%) (3.5%) (58%) 139.3% 61.8% Total Common Shareholders' Equity 37.2% 40.0% 40.4% 6.7% (1.0%) Noncontrolling interests 2.5% 1.5% (10.6%) (32.5%) Total Equity 39.7% 42.2% 41.9% 5.7% (2.7%) Total Liabilities and Equities 100.0% 100.0% 100.0% (0.6%) (1.9%) Source: Wal-Mart Stores, Inc. Forms 10-K for the three fiscal years ended January 31, 2014, 2015, and 2016 Exhibit 1.23 Wal-Mart Stores, Inc. Common-Size and Percentage Change Income Statements for the Three Fiscal Years Ended January 31 (allow for rounding) (Integrative Case 1.1) na 2.29 Revenues Cost of goods sold Gross Profit Selling, general and administrative expenses Operating Profit Interest income Interest expense Income before Tax Income tax expense Income (Loss) from discontinued operations Net Income Net income attributable to noncontrolling interests Net Income Attributable to common Shareholders Other comprehensive income items Comprehensive Income Common Size 2014 2015 2016 100.0% 100.0% 100.0% (75.2%) (75.29) (74.9%) 24.8% 24.8% 25.1% (19.2%) (19.2%) (20.1%) 5.6% 5.6% 5.0% 0.0% 0.0% 0.0% (0.5%) (0.5%) (0.5%) 5.2% 5.1% 4.5% (1.7%) (1.6%) (1.4%) 0.0% 0.1% 0.0% 3.5% 3.5% 3.1% Percentage Change 2015 2016 2.0% (0.7%) 2.0% (1.1%) 2.0% 0.5% 2.3% 3.9% 1.0% (11.2%) (5.0%) (28.3%) 5.4% 3.5% 0.6% (12.7%) (1.5%) (17.9%) 97.9% (100.0%) 2.4% (11.8%) (0.1%) (0.2%) (0.1%) 9.4% (47.6%) 3.4% (0.5%) 2.9% 3.4% (0.9%) 2.5% 3.0% (0.9%) 2.1% 2.1% 73.2% (10.4%) (10.2%) 6.2% (15.8%) Source: Wal-Mart Stores, Inc. Forms 10-K for the three fiscal years ended January 31, 2014, 2015, and 2016