Integrative Case 1.1 (Chapter 1) presents the financial statements for Walmart for 20122015. In addition, the website for this text contains Walmarts December 31, 2015, Form 10-K. You should read the management discussion and analysis (MD&A), financial statements, and notes to the financial statements, especially Note 2, Summary of Significant Accounting Policies.

REQUIRED

REVENUE RECOGNITION

1. DoesWalmart recognize all of its revenue at a point in time? If not, how is it recognized?

COST OF SALES AND INVENTORY

1. What costing method does Walmart use to determine the cost of sales and inventory?
2. How does Walmart handle the requirement to report inventory at lower-of-cost or market?
3. Does Walmart have a large LIFO reserve? If not, why?
4. Walmart receives discounts from suppliers because it purchases large volumes of merchandise. Is this reported as other income or accounted for in another way?

PENSIONS

1. What kind of pension plans does Walmart have, and how are earnings affected by each?

Respond to the questions using APA style to include at least one citation from the chapter readings and/or the case study that supports or provides evidence for your response to each question.