III . Use Appendix E in the back of your text/etext which includes financial statements for Wal-Mart Stores, Inc. as reported for years ended January 31, 207, 2016 and 2015. a) Calculate the Free Cash Flow for each year 2017 2016 2015 b) Comment on the trend (i.e. is it getting better/worse? What does that mean for Wal-Mart?) Consolidated Balance Sheets Fiscal Years Ended January 31, 2016 2015 $ 8,705 5,624 44,469 1,441 60,239 $ 9,135 6,778 45,141 2,224 63,278 (Amounts in millions) ASSETS Current assets: Cash and cash equivalents Receivables, net Inventories Prepaid expenses and other Total current assets Property and equipment: Property and equipment Less accumulated depreciation Property and equipment, net Property under capital lease and financing obligations: Property under capital lease and financing obligations Less accumulated amortization Property under capital lease and financing obligations, net Goodwill Other assets and deferred charges Total assets 176,958 (66,787) 110,171 177,395 (63,115) 114,280 11,096 (4,751) 6,345 16,695 6,131 $199,581 5,239 (2,864) 2,375 18,102 5,455 $203,490 LIABILITIES AND EQUITY Current liabilities: Short-term borrowings Accounts payable Accrued liabilities Accrued income taxes Long-term debt due within one year Capital lease and financing obligations due within one year Total current liabilities $ 2,708 38,487 19,607 521 2,745 551 $ 1,592 38,410 19,152 1,021 4,791 287 64,619 65,253 Accumulated Total Other Walmart Comprehensive Shareholders Income (Loss) Equity $ (587) $ 76,343 16,022 Nonredeemable Noncontrolling Interest Total Equity Redeemable Noncontrolling Interest Retained Earnings $ 72,978 16,022 $ 5,395 595 $ 81,738 16,617 $ 519 78 Capital in Common Stock Excess of (Amounts in millions) Shares Amount Par Value Balances as of February 1, 2013 3,314 $332 $3,620 Consolidated net income Other comprehensive income, net of income taxes Cash dividends declared ($1.88 per share) Purchase of Company stock (87) (9) (294) Redemption value adjustment of redeemable noncontrolling interest (1,019) Other 6 55 - (2,409) (2,409) (311) (2,720) (66) (6,139) (6,254) (6,139) (6,557) (6,139) (6,557) (1,019) 14 1,019 (59) (41) (595) (1,019) (581) 81,339 17,099 3.233 323 2,362 (2,996) 1,491 76,566 16,363 76,255 16,363 5,084 736 - - - (4,172) 111] || || (4,172) (546) Balances as of January 31, 2014 Consolidated net income Other comprehensive loss, net of income taxes Cash dividends declared ($1.92 per share) Purchase of Company stock Purchase of redeemable noncontrolling interest Other (4,718) (6,185) (950) (6,185) (980) (6,185) (980) (13) (1) (29) (1,491) 8 1 129 (17) 113 (731) (618) 323 2,462 (7,168) 1 85,777 14,694 81,394 14,694 4,543 386 85,937 15,080 - - (4,429) (4,429) (541) (4,970) - Balances as of January 31, 2015 3,228 Consolidated net income Other comprehensive income, net of income taxes Cash dividends declared ($1.96 per share) Purchase of Company stock (65) Cash dividend declared to noncontrolling interest Other (1) Balances as of January 31, 2016 3,162 (6,294) (4,148) (6,294) (4,256) (6,294) (4,256) (6) (102) | - (555) (8) (563) (691) (632) $3,065 (691) (1,195) $83,611 $317 $1,805 $90,021 $(11,597) $80,546 $ See accompanying notes Consolidated Statements of Comprehensive Income Fiscal Years Ended January 31, 2016 2015 2014 $15,080 $17,099 $ 16,695 (386) (736) (606) (67) 14,694 16,363 16,022 (Amounts in millions) Consolidated net income Less consolidated net income attributable to nonredeemable noncontrolling interest Less consolidated net income attributable to redeemable noncontrolling interest Consolidated net income attributable to Walmart Other comprehensive income (loss), net of income taxes Currency translation and other Net investment hedges Cash flow hedges Minimum pension liability Other comprehensive income (loss), net of income taxes Less other comprehensive income (loss) attributable to nonredeemable noncontrolling interest Less other comprehensive income (loss) attributable to redeemable noncontrolling interest Other comprehensive income (loss) attributable to Walmart Comprehensive income, net of income taxes Less comprehensive income (loss) attributable to nonredeemable noncontrolling interest Less comprehensive income (loss) attributable to redeemable noncontrolling interest Comprehensive income attributable to Walmart (5,220) 366 (202) 86 (4,558) 379 (470) (69) (3,221) 75 207 153 (4,970) 541 (4,718) 546 (2,786) 311 66 (4,172) (4,429) 10,110 155 12,381 (2,409) 13,909 (295) (1) (190) $10,265 $12,191 $13,613 See accompanying notes. Consolidated Statements of Cash Flows Fiscal Years Ended January 31, 2016 2015 2014 $ 15,080 $ 17,099 (285) 16,814 $ 16,695 (144) 16,551 15,080 (Amounts in millions) Cash flows from operating activities: Consolidated net income Income from discontinued operations, net of income taxes Income from continuing operations Adjustments to reconcile income from continuing operations to net cash provided by operating activities: Depreciation and amortization Deferred income taxes Other operating activities Changes in certain assets and liabilities, net of effects of acquisitions: Receivables, net Inventories Accounts payable Accrued liabilities Accrued income taxes Net cash provided by operating activities 9,454 (672) 1,410 9,173 (503) 785 8,870 (279) 938 (19) (703) 2,008 1,303 (472) 27,389 (569) (1,229) 2,678 1,249 166 (566) (1,667) 531 103 (1,224) 23,257 28,564 Cash flows from investing activities: Payments for property and equipment Proceeds from disposal of property and equipment Proceeds from disposal of certain operations Other investing activities Net cash used in investing activities (11,477) 635 246 (13,115) 727 (12,174) 570 671 (192) (79) (138) (10,675) (11,125) (12,526) Cash flows from financing activities: Net change in short-term borrowings Proceeds from issuance of long-term debt Payments of long-term debt Dividends paid Purchase of Company stock 1,235 39 (4,432) (6,294) (4.112) (6,288) 5,174 (3,904) (6,185) (1015) 911 7,072 (4,968) (6,139) (6.683) Consolidated Statements of Income Fiscal Years Ended January 31, 2016 2015 2014 $478,614 3,516 482,130 $482,229 3,422 485,651 $473,076 3,218 476,294 360,984 97,041 24,105 365,086 93,418 27,147 358,069 91,353 26,872 2,027 521 (81) 2,467 2,161 300 (113) 2,348 2,072 263 (119) 2,216 24,656 21,638 24,799 (Amounts in millions, except per share data) Revenues: Net sales Membership and other income Total revenues Costs and expenses: Cost of sales Operating, selling, general and administrative expenses Operating income Interest: Debt Capital lease and financing obligations Interest income Interest, net Income from continuing operations before income taxes Provision for income taxes: Current Deferred Total provision for income taxes Income from continuing operations Income from discontinued operations, net of income taxes Consolidated net income Consolidated net income attributable to noncontrolling interest Consolidated net income attributable to Walmart Basic net income per common share: Basic income per common share from continuing operations attributable to Walmart Basic income per common share from discontinued operations attributable to Walmart Basic net income per common share attributable to Walmart Diluted net income per common share: Diluted income per common share from continuing operations attributable to Walmart Diluted income per common share from discontinued operations attributable to Walmart Diluted net income per common share attributable to Walmart Weighted average common shares outstanding: Basic 7,584 (1,026) 6,558 15,080 8,504 (519) 7,985 8,619 (514) 8,105 16,551 144 15,080 (386) 16,814 285 17,099 (736) $ 16,363 16,695 (673) $ 14,694 $ 16,022 $ 4.58 $ $ 5.01 0.06 4.87 0.03 $ 4.58 $ 5.07 $ 4.90 $ 4.57 $ $ 4.99 0.06 4.85 0.03 $ 4.57 $ 5.05 $ 4.88 3,207 3,230 3,269 Long-term debt Long-term capital lease and financing obligations Deferred income taxes and other 38,214 5,816 7,321 40,889 2,606 8,805 Commitments and contingencies Equity: Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive income (loss) Total Walmart shareholders' equity Nonredeemable noncontrolling interest Total equity Total liabilities and equity 317 1,805 90,021 (11,597) 80,546 3,065 323 2,462 85,777 (7,168) 81,394 4,543 83,611 $199,581 85,937 $203,490 See accompanying notes Consolidated Statements of Shareholders' Equity and Redeemable Noncontrolling Interest