Integrative Case 10.1

Design a spreadsheet and prepare a set of financial statement forecasts for Walmart for Year +1 to Year +5 using the assumptions that follow. Project the amounts in the order presented (unless indicated otherwise) beginning with the income statement, then the balance sheet, and then the statement of cash flows. For this portion of the case, assume that Walmart will exercise its financial flexibility with the cash and cash equivalents account to balance the balance sheet.

Exhibit 10.10 Walmart Stores, Inc. Balance Sheets (amounts in millions; allow for rounding) (Integrative Case 10.1) 2014 2015 2016 $ 9,135 6,778 45,141 2,224 $ 8.705 5,624 44,469 1,441 $ 7,281 6,677 44,858 1,909 460 $ 61,185 178,678 (60,771) 19,510 6,149 $204.751 $ 63,278 182,634 (65,979) 18,102 5,455 $203,490 $ 60,239 188,054 (71,538) 16,695 6,131 $199,581 Assets Cash and cash equivalents Accounts and notes receivable-net Inventories Prepaid expenses and other current assets Current assets of discontinued segments Current Assets Property, plant, and equipment-at cost Accumulated depreciation Goodwill Other assets Total Assets Liabilities and Equities Accounts payable Current accrued expenses Notes payable and short-term debt Current maturities of long term debt Income taxes payable Current liabilities of discontinued operations Current Liabilities Long-term debt obligations Deferred tax liabilities-noncurrent Redeemable noncontrolling interest Total Liabilities Common stock + Additional paid.in capital Retained earnings Accum.other comprehensive income (loss) Total Common Shareholders' Equity Noncontrolling interests Total Equity Total Liabilities and Equities $ 38,410 19,152 1,592 5,078 1,021 $ 38,487 19,607 2.708 3.296 521 $ 37,415 18,793 7,670 4,412 966 89 $ 69,345 44,559 8,017 1.491 $123,412 2,685 76,566 (2,996) $ 76,255 5,084 $ 81,339 $204,751 $ 65,253 43,495 8,805 $ 64,619 44,030 7.321 $117,553 2.785 85,777 (7,168) $ 81,394 4,543 $ 85,937 $203,490 $115,970 2,122 90,021 (11,597) $ 80,546 3,065 $ 83,611 $199,581 Exhibit 10.11 Walmart Stores, Inc. Income Statements (amounts in millions; allow for rounding) (Integrative Case 10.1) 2014 2015 2016 Revenues $ 476,294 $ 485,651 $ 482,130 Cost of goods sold (358,069) (365,086) (360,984) Gross Profit $118,225 $ 120,565 $121,146 Selling general, and administrative expenses (91,353) (93418) (97,041) Operating Profit $ 26,872 $ 27,147 $ 24,105 Interest income 119 113 81 Interest expense (2.335) (2461) (2.548) Income before Tax $ 24,656 $ 24,799 $ 21,638 Income tax expense (8,105) (7985) (6,558) Income (Loss) from discontinued operations 144 285 Net Income $ 16,695 $ 17,099 $ 15,080 Net income attributable to noncontrolling interests (673) (736) (386) Net Income Attributable to Common Shareholders $ 16,022 $ 16,363 $ 14,694 Other comprehensive income items (2.409) (4,172) (4,429) Comprehensive Income $ 13,613 $ 12,191 $10.265 Exhibit 10.12 Walmart Stores, Inc. Statements of Cash Flows (amounts in millions, allow for rounding) (Integrative Case 10.1) 2014 2015 2016 Net Income $ 16,695 $ 17,099 $ 15,080 Add back depreciation and amortization expenses 8,870 9,173 9454 Deferred income taxes (279) (503) (672) (Increase) Decrease in accounts receivable (566) (569) (19) (Increase) Decrease in inventories (1,667) (1,229) (703) Increase (Decrease) in accounts payable 531 2,678 2,008 Increase (Decrease) in income taxes payable (1,224) 166 (472) Increase (Decrease) in other current liabilities 103 1,249 1,303 (Income) Loss from discontinued segments (144) (285) Other operating cash flows 938 785 1410 Net Cash Flow from Operating Activities $ 23,257 $ 28,564 $ 27,389 Proceeds from sales of property, plant, and equipment 727 570 635 Property, plant, and equipment acquired (13,115) (12,174) (11477) Investments acquired Other investment transactions (138) 479 167 Net Cash Flow from Investing Activities $(12,526 $(11,125) $(10,675) Increase (Decrease) in short-term borrowing 911 (6,288) 1.235 Increase (Decrease) in long-term borrowing 2,104 1,270 (4,393) Share repurchases-treasury stock (6,683) (1,015) (4,112) Dividend payments (6,139) (6,185) (6,294) Other financing activities (982) (2,853) (2,558) Net Cash Flow from Financing Activities $110,789 $(15,071) $(16,122) Effects of exchange rate changes on cash (442) (514) (1,022) Net Change in Cash $ (500) $ 1,854 $ (430) Cash and cash equivalents, beginning of year $ 7,781 $ 7,281 $ 9,135 Cash and cash equivalents, end of year $ 7,281 $ 9,135 $ 8,705