ION 1 The Role of Accounting as an Information System The balance sheet and disclosure of significant accounting policies taken from the 2017 annual report of Walmart Stores Inc, appear below. Use this information to answer the following questions 1. Does Walmart separately report current assets versus long-term assets, and current liabilities versus long-term liabilities (yeso) 2. What amounts did Walmart report for the following items for 2017 a. Total assets d. Total equity h. Current assets e. Retained earnings c. Current liabilities Inventory 3. What is Walmart's largest current asset? What is its largest current liability? 4. Compute Walmart's current ratio for 2017 5. Identify the following items from the summary of significant accounting policies: a. Does the company have any securities classified as cash equivalents (yeso)? h. What cost method does the company use for its US inventory? c. When does the company recognize revenue from service transactions? gh 8 ocials WAL-MART STORES, INC. Consolidated Balance Sheets ($ in millions except per share data) As of January 31, 2017 2016 $ 6.867 5,835 43,046 1,941 57,689 $ 8,705 5,624 44.469 1,441 60,239 179,492 (71.782) 107,710 176,958 (66,787) 110,171 11,637 (5.169) 6,468 17,037 9,921 $198.825 11,096 (4.751) 6,345 16,695 6,131 $199,581 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 leases: Property under capital lease and financing obligations Less accumulated amortization Property under capital leases and financing obligations (net) Goodwill Other assets and deferred charges Total assets Liabilities, Redeemable Noncontrolling Interest 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 Long-term debt Long-term capital lease and financing obligations Deferred Income taxes and other 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 $ 1.099 41.433 20,654 921 2,256 565 66,928 36,015 6.003 9,344 $ 2,708 38,487 19,607 521 2.745 551 64,619 38.214 5,816 7,321 305 2,371 89,354 (14,232) 77,798 2,737 80,535 $198,825 317 1,805 90,021 (11,597) 80,546 3,065 83,611 $199,581 Total equity Total liabilities, redeemable noncontrolling interest and equity Source: Wal-Mart