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Please complete part 2 for me in 500 words or more this is all in regards to Walmarts 10-k report so compairing it to its

Please complete part 2 for me in 500 words or more

this is all in regards to Walmarts 10-k report so compairing it to its previous year would work.

Part 1: Compute and analyze the following group of ratios for Walmart and explain how they affect the investors or creditors decisions regarding the company. Please include an introduction sentence referencing the sources of data for ratios. Provide a comparative analysis for each ratio. Make sure your analysis includes a comparison to the companys prior year ratios OR the competitors ratios.

Liquidity Ratios:

A. Current ratio = Current Assets / Current Liabilities

= 61897/77477

=0.80

The current ratio of the company is 0.80, this means that the current assets of the company are not enough to settle the current liabilities. A current ratio above 1 is optimal.

B. Accounts receivable turnover =Net Sale/Average AR

Average AR=

5614+6283

2

Average AR=

5948.50

Accounts receivable turnover=510329/5948.50

=85.79

The Accounts receivable turnover ratio shows the capability of the company to collect the credit sales made. The company (Walmart) has 85.7 as its accounts receivable ratio, which when compared to other companies in the industry (Normally 80 and below) has higher-quality customers that pay their debts quickly.

C. Inventory turnover =Cost of Goods Sold/Average Inventories

Average Inventory=

43783+44269

2

Average Inventory=

44026

Inventory turnover=385301/44026

=8.75

The inventory turnover ratio shows how many times the company has replaced the inventory as a reason for sales. Walmart has an inventory turnover ratio of 8.75, which means that it has replenished the inventory almost 9 times during the year due to its sales.

Part 2: Provide the computation of your ratios and cross-reference to the financial statements.

a. Type the formulas and numbers used in your computation for the ratios used in your written assignment. Make sure your calculations include the companys prior year ratios OR the competitor company.

b. Reference to the year(s) of the financial statements and reference to the specific financial statements used in each calculation.

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