Integrative case 8.1. Walmart makes significant investments in operating capacity, primarily via investments in property, plant, and equipment, but also via investments in wholly and partially owned subsidiaries. Walmart also has significant u.s operations in its Walmart international segment. The online appendix provides Walmarts January 31, 2021, consolidated financial statements and accompanying notes, which describe these significant investments. Required. a. Estimate the average total estimated useful life of the depreciable property, plant, and equipment for the year ending January 21, 2021. Does the estimate reconcile with the stated accounting policy on useful lives for property, plant, and equipment? Explain. b. How should an analyst interpret fluctuations in this estimate for a given company over time? How should an analyst interpret differences in this estimate between a company and its competitors? c. Estimate the proportion of PP&E that has been used up and estimate its remaining useful life. How might an analyst use this information? d. Has Walmart recognized an impairment of property, plant, and equipment or goodwill during the fiscal year ending January 31, 2021? Why is it important for the analyst to know the answer to this question? e. Under U.S GAAP, the impairment tests for goodwill and PP&E are different. Describe the main difference. f. Walmart must consolidate subsidiaries that are partially owned. Evidence of this fact can be found in the income statement, the balance sheet, and the statement of cash flows, where noncontrolling interest in net income, noncontrolling interest in net assets, and cash flows related to noncontrolling interest are referenced. Explain the meaning of the noncontrolling interest in net income and the noncontrolling interest in net assets. g. Generally speaking, firms, including firms that are partially owned subsidiaries, pay out only a portion of their net income during a period (i.e., the dividend payout ratio is generally less than one). January 31, 2021, the balance sheet reports a decrease in noncontrolling interest in net assets. Do other statements (and note information) provide evidence as to what might have happened? h. What was the gain or loss from foreign currency translation for the year ended January 31, 2021? Where is it reported, and what is the rationale for reporting it there? i. What happened to foreign exchange rates during the year?