Question
Help !!The following table gives abbreviated balance sheets and income statements for Walmart. At the end of fiscal 2017, Walmart had 3,050 million shares outstanding
Help !!The following table gives abbreviated balance sheets and income statements for Walmart. At the end of fiscal 2017, Walmart had 3,050 million shares outstanding with a share price of $142. The company's weighted-average cost of capital was about 5%. Assume a tax rate of 35%.
Balance Sheet (figures in $ millions) | |||||
End of Year | Start of Year | ||||
Assets | |||||
Current assets: | |||||
Cash and marketable securities | $ | 6,936 | $ | 7,047 | |
Accounts receivable | 5,794 | 6,015 | |||
Inventories | 43,963 | 43,226 | |||
Other current assets | 3,691 | 2,121 | |||
Total current assets | $ | 60,384 | $ | 58,409 | |
Fixed assets: | |||||
Net fixed assets | $ | 114,998 | $ | 114,358 | |
Other long-term assets | 30,220 | 27,138 | |||
Total assets | $ | 205,602 | $ | 199,905 | |
Liabilities and Shareholders' Equity | |||||
Current liabilities: | |||||
Accounts payable | $ | 46,272 | $ | 41,613 | |
Other current liabilities | 32,609 | 25,675 | |||
Total current liabilities | $ | 78,881 | $ | 67,288 | |
Long-term debt | 37,005 | 42,198 | |||
Other long-term liabilities | 11,487 | 12,261 | |||
Total liabilities | $ | 127,373 | $ | 121,747 | |
Total shareholders' equity | 78,229 | 78,158 | |||
Total liabilities and shareholders equity | $ | 205,602 | $ | 199,905 | |
Income Statement (figures in $ millions) | |||||
Net sales | $ | 500,523 | $ | 486,053 | |
Cost of goods sold | 373,576 | 361,436 | |||
Selling, general, and administrative expenses | 96,161 | 91,953 | |||
Depreciation | 10,709 | 10,260 | |||
Earnings before interest and taxes (EBIT) | $ | 20,077 | $ | 22,404 | |
Interest expense | 2,358 | 2,447 | |||
Taxable income | $ | 17,719 | $ | 19,957 | |
Tax | 4,600 | 6,985 | |||
Net income | $ | 13,119 | $ | 12,972 | |
Dividends | 6,304 | 6,875 | |||
Addition to retained earnings | $ | 6,815 | $ | 6,097 | |
a. Calculate the market value added. (Do not round intermediate calculations. Enter your answer in millions rounded to nearest whole number.)
b. Calculate the market-to-book ratio. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
c. Calculate the economic value added. (Do not round intermediate calculations. Enter your answer in millions rounded to nearest whole number.)
d. Calculate the return on start-of-the-year capital. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
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