Homework #1 FIN 373 - Cash Flow, EVA, MVA Analysis pue: January 24 HW#1 - Cash Flow, EVA, MVA Analysis, Pata for this assignment is in an excel spreadsheet which is posted to D2L content page. Complete all of the blue shaded cells in the excel spreadsheet. Use formulas to compute the cell values - do not type in the value in those cells. Answer the questions by typing your answer in the textbook below each question in the excel spreadsheet. When you are finished, please upload your completed spreadsheet into the D2L dropbox. NAME Walmart Inc. Income Statement for fiscal year ended Jan/31/XXXX ($-billions except per share data) Sales Cost of goods sold Gross profit Depreciation and amortization Operating expenses Operating income (EBIT) Non-operating income (+) and expense (-) Interest expense Pretax income Income tax expense Net income 2015 485.7 355.9 129.7 9.2 93.4 27.1 -0.8 2016 482.1 351.5 130.6 9.5 97.0 24.1 -0.5 2.6 21.1 6.4 14.7 2017 485.1 351.2 134.0 10.1 101.9 22.0 -0.1 2.4 19.6 2018 499.9 362.9 137.0 10.5 105.3 21.2 -4.7 2.3 14.2 4.3 9.9 2019 514.4 374.6 139.8 10.7 105.9 23.2 -10.1 2.4 10.6 4.0 2.5 23.9 7.7 16.2 5.9 13.6 6.7 2015 9.1 2017 6.9 0.0 0.0 2018 6.8 0.0 5.6 43.8 6.8 5.8 43.0 Balance Sheet on Jan/31/XXXX (S-billions except per share data) Cash Short-term investments Accounts receivables Inventories Other current assets Current assets Property, plant, and equipment-net Intangible assets Other assets Total assets 2016 8.7 0.0 5.6 44.5 1.4 60.2 116.5 17.1 5.7 199.6 1.9 45,1 2.2 63.3 116.7 18.5 5.3 203.7 3.5 2019 7.8 0.0 6.3 44.3 3.6 61.9 111.4 31.2 14.8 219.3 57.7 114.2 17.0 9.9 198.8 59.7 114.8 18.2 11.8 204.5 6.7 38.4 1.1 19.1 Short-term debt and current portion of long-term debt Accounts payable Accurals Other current liabilities Current liabilities Long-term debt Total liabilities Total shareholder equity Total liabilities and shareholder equity 65.3 52.5 117.8 85. 203.7 6.0 38.5 0.5 19.6 64.6 51.4 116.0 3.6 199.6 3.9 41.4 0.9 20.7 66.9 51.4 118.3 80.5 198.8 9.7 46.1 0.6 22.1 78.5 45.2 123.7 80.8 204.5 7.8 47.1 0.4 22.2 77.5 62.2 139.7 79.6 219.3 9 8 Other Data: WACC Tax rate Stock price Shares common stock outstanding (billions) Total dividends ($-billions) 2015 5.31% 32.2% 84.98 3.228 6.19 2016 5.31% 30.3% 66.36 3.162 6.29 2017 5.31% 30.3% 66.74 3.048 6.22 2018 5.31% 30.4% 106.60 2.952 6.12 2019 5.31% 37.4% 95.83 2.878 6.10 1. Calculations-complete all blue shaded cells. Use formulas only. Do not type in values 2015 2016 2017 2018 2019 1. Calculations - complete all blue shaded cells. Use formulas only. Do not type in values 2015 2016 2017 2018 2019 NOPAT Operating Current Assets Operating Current Liabilities Net Operating Working Capital Net Operating Long-term Assets -Net Operating Capital Net Investment in Operating Capital Free Cash Flow 2015 2016 2017 2018 2019 Source of Capital Approach to NOC Debt Common Equity Non-Operating Assets Net Operating Capital Net Investment in Operating Capital 2015 2016 2017 2018 2019 Performance Evaluation Market Value of Equity Book Value of Equity Market Value Added Return on invested Capital Economic Value Added 2. Questions -type answers in the boxes provided below each question. 01 - On the basis of EVA, did the management of Walmart been adding or destroying shareholder value over the 2015-2016 period (explain)? Answer for Q1: 02 - On the basis of MVA, did the management of Walmart perform better or worse from 2015 to 2016 (explain)? Answer for Q2: 3 Q3 - Has Walmart invested its capital wisely during the 2015-2019 period (explain)? Answer for Q3: Homework #1 FIN 373 - Cash Flow, EVA, MVA Analysis pue: January 24 HW#1 - Cash Flow, EVA, MVA Analysis, Pata for this assignment is in an excel spreadsheet which is posted to D2L content page. Complete all of the blue shaded cells in the excel spreadsheet. Use formulas to compute the cell values - do not type in the value in those cells. Answer the questions by typing your answer in the textbook below each question in the excel spreadsheet. When you are finished, please upload your completed spreadsheet into the D2L dropbox. NAME Walmart Inc. Income Statement for fiscal year ended Jan/31/XXXX ($-billions except per share data) Sales Cost of goods sold Gross profit Depreciation and amortization Operating expenses Operating income (EBIT) Non-operating income (+) and expense (-) Interest expense Pretax income Income tax expense Net income 2015 485.7 355.9 129.7 9.2 93.4 27.1 -0.8 2016 482.1 351.5 130.6 9.5 97.0 24.1 -0.5 2.6 21.1 6.4 14.7 2017 485.1 351.2 134.0 10.1 101.9 22.0 -0.1 2.4 19.6 2018 499.9 362.9 137.0 10.5 105.3 21.2 -4.7 2.3 14.2 4.3 9.9 2019 514.4 374.6 139.8 10.7 105.9 23.2 -10.1 2.4 10.6 4.0 2.5 23.9 7.7 16.2 5.9 13.6 6.7 2015 9.1 2017 6.9 0.0 0.0 2018 6.8 0.0 5.6 43.8 6.8 5.8 43.0 Balance Sheet on Jan/31/XXXX (S-billions except per share data) Cash Short-term investments Accounts receivables Inventories Other current assets Current assets Property, plant, and equipment-net Intangible assets Other assets Total assets 2016 8.7 0.0 5.6 44.5 1.4 60.2 116.5 17.1 5.7 199.6 1.9 45,1 2.2 63.3 116.7 18.5 5.3 203.7 3.5 2019 7.8 0.0 6.3 44.3 3.6 61.9 111.4 31.2 14.8 219.3 57.7 114.2 17.0 9.9 198.8 59.7 114.8 18.2 11.8 204.5 6.7 38.4 1.1 19.1 Short-term debt and current portion of long-term debt Accounts payable Accurals Other current liabilities Current liabilities Long-term debt Total liabilities Total shareholder equity Total liabilities and shareholder equity 65.3 52.5 117.8 85. 203.7 6.0 38.5 0.5 19.6 64.6 51.4 116.0 3.6 199.6 3.9 41.4 0.9 20.7 66.9 51.4 118.3 80.5 198.8 9.7 46.1 0.6 22.1 78.5 45.2 123.7 80.8 204.5 7.8 47.1 0.4 22.2 77.5 62.2 139.7 79.6 219.3 9 8 Other Data: WACC Tax rate Stock price Shares common stock outstanding (billions) Total dividends ($-billions) 2015 5.31% 32.2% 84.98 3.228 6.19 2016 5.31% 30.3% 66.36 3.162 6.29 2017 5.31% 30.3% 66.74 3.048 6.22 2018 5.31% 30.4% 106.60 2.952 6.12 2019 5.31% 37.4% 95.83 2.878 6.10 1. Calculations-complete all blue shaded cells. Use formulas only. Do not type in values 2015 2016 2017 2018 2019 1. Calculations - complete all blue shaded cells. Use formulas only. Do not type in values 2015 2016 2017 2018 2019 NOPAT Operating Current Assets Operating Current Liabilities Net Operating Working Capital Net Operating Long-term Assets -Net Operating Capital Net Investment in Operating Capital Free Cash Flow 2015 2016 2017 2018 2019 Source of Capital Approach to NOC Debt Common Equity Non-Operating Assets Net Operating Capital Net Investment in Operating Capital 2015 2016 2017 2018 2019 Performance Evaluation Market Value of Equity Book Value of Equity Market Value Added Return on invested Capital Economic Value Added 2. Questions -type answers in the boxes provided below each question. 01 - On the basis of EVA, did the management of Walmart been adding or destroying shareholder value over the 2015-2016 period (explain)? Answer for Q1: 02 - On the basis of MVA, did the management of Walmart perform better or worse from 2015 to 2016 (explain)? Answer for Q2: 3 Q3 - Has Walmart invested its capital wisely during the 2015-2019 period (explain)? Answer for Q3