Please give answers for Q-S. Thank you

q. What was the single largest use of cash by Walmart during this three-year period? How does that use of cash reflect Walmarts business strategy?

r. What was Walmarts single largest use of cash for financing activities during this three-year period? What does that imply about Walmarts financial position and performance?

s. Prepare an analysis that explains the change in retained earnings from $85,777 million at the end of fiscal 2014 to $90,021 million at the end of fiscal 2015. Do not be alarmed if your reconciliation is close to, but does not exactly equal, the $90,021 million ending balance.

Exhibit 1.19 Wal-Mart Stores, Inc. Balance Sheets as of January 31 (amounts in millions; allow for rounding) (Integrative Case 1.1) 2016 2014 2015 Assets Cash and cash equivalents $ 7,281 6,677 $ 8,705 9,135 6,778 Accounts and notes receivable-net 5,624 44,469 44,858 Inventories 45,141 Prepaid expenses and other current assets Current assets of discontinued segments 1,909 2,224 1,441 460 60,239 Current Assets 61,185 63,278 Property, plant, and equipment-at cost Accumulated depreciation 178,678 182,634 188,054 (60,771) (65,979) (71,538) 16,695 6,13 $199,581 Goodwill 19,510 18,102 Other assets 5,455 6,149 Total Assets $203,490 $204,751 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 $ 38,410 $37,415 38,487 18,793 19,152 19,607 7,670 1,592 2,708 4,412 5,078 1,021 3,296 966 521 89 Current Liabilities $69,345 64,619 65,253 43,495 Long-term debt obligations Deferred tax liabilities-noncurrent Redeemable noncontrolI l ing interest 44,559 44,030 8,017 8,805 7,321 149 Total Liabilities $123,412 $117,553 $115,970 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 2,685 2,785 85,777 2,122 90,021 (11,597) $ 80,546 76,566 (2,996) (7,168) $ 81,394 $76,255 5,084 4,543 3,065 $81,339 83,611 $85,937 $203,490 $204,751 $199,581 Source: Wal-Mart Stores, Inc. Forms 10-K for the three fiscal years ended January 31, 2014, 2015, and 2016. Income Statements for the Fiscal Years Ended January 31 (amounts in millions; allow for rounding) (Integrative Case 1.1) 2014 2015 2016 $482,130 Revenues $476,294 $ 485,651 Cost of goods sold 358,069 $118,225 365,086 $120,565 360,984 $121,146 Gross Profit Selling, general, and administrative expenses Operating Profit 91,353 26,872 93418 97,041 $ 27,147 $24,105 Interest income 119 113 81 Interest expense (2,335) (2,548) (2,461) 24,799 Income before Tax 24,656 21,638 Income tax expense Income (Loss) from discontinued operations 8,105 7,985 6,558 144 285 Net Income $17,099 15,080 (386) $14,694 16,695 (673) $ 16,022 (2,409) $13,613 Net income attributable to noncontrolling interests (736) Net Income Attributable to Common Shareholders 16,363 Other comprehensive income items Comprehensive Income (4,172) $12,191 (4,429) $10,265 Source: Wal-Mart Stores, Inc. Forms 10-K for the three fiscal years ended January 31, 2014, 2015, and 2016 Exhibit 1.21 Wal-Mart Stores, Inc. Statements of Cash Flows for the Three Fiscal Years Ended January 31 (amounts in millions; allow for rounding) (Integrative Case 1.1) 2014 2015 2016 $17,099 Net Income $16,695 $15,080 Add back depreciation and amortization expenses 8,870 9,173 9,454 Deferred income taxes (503) (569) (672) (279) (566) (1,667) (Increase) Decrease in accounts receivable (19) (Increase) Decrease in inventories (1,229) (703) 2,008 (472) Increase (Decrease) in accounts payable Increase (Decrease) in income taxes payable Increase (Decrease) in other current liabilities 531 2,678 166 (1,224) 103 1,249 1,303 (Income) Loss from discontinued segments (285) (144) O 785 Exhibit 1.21 (Continued) Proceeds from sales of property, plant, and equipment Property, plant, and equipment acquired Investments acquired 727 570 635 (13,115) (12,174) (11,477) Other investment transactions (138) 479 167 $(12,526) $(11,125) $(10,675) Net Cash Flow from Investing Activities Increase (Decrease) in short-term borrowing Increase (Decrease) in long-term borrowing Share repurchases-treasury stock Dividend payments 911 1,235 (6,288) 1,270 (1,015) (6,185) 2,104 (4,393) (4,112) (6,683) (6,139) (982) (6,294) Other financing activities Net Cash Flow from Financing Activities Effects of exchange rate changes on cash Net Change in Cash Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year (2,558) (2,853) $(15,071) (514) $(10,789) $(16,122) (1,022) $ (500) S 7,781 $ 7,281 1,854 $ (430) $ 9,135 $ 8,705 7,281 9,135 Source: Wal-Mart Stores, Inc. Forms 10-K for the three fiscal years ended January 31, 2014, 2015, and 2016. Overview of Financial Reporting, Financial Statement Analysis, and Valuation 64 CHAPTER 1 o. Why does Walmart show increases in inventory as subtractions when computing cash flow from operations? p. Why does Walmart show increases in accounts payable as additions when computing cash flow from operations? q. What was the single largest use of cash by Walmart during this three-year period? How does that use of cash reflect Walmart's business strategy? r. What was Walmart's single largest use of cash for financing activities during this three- year period? What does that imply about Walmart's financial position and performance? Exhibit 1.19 Wal-Mart Stores, Inc. Balance Sheets as of January 31 (amounts in millions; allow for rounding) (Integrative Case 1.1) 2016 2014 2015 Assets Cash and cash equivalents $ 7,281 6,677 $ 8,705 9,135 6,778 Accounts and notes receivable-net 5,624 44,469 44,858 Inventories 45,141 Prepaid expenses and other current assets Current assets of discontinued segments 1,909 2,224 1,441 460 60,239 Current Assets 61,185 63,278 Property, plant, and equipment-at cost Accumulated depreciation 178,678 182,634 188,054 (60,771) (65,979) (71,538) 16,695 6,13 $199,581 Goodwill 19,510 18,102 Other assets 5,455 6,149 Total Assets $203,490 $204,751 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 $ 38,410 $37,415 38,487 18,793 19,152 19,607 7,670 1,592 2,708 4,412 5,078 1,021 3,296 966 521 89 Current Liabilities $69,345 64,619 65,253 43,495 Long-term debt obligations Deferred tax liabilities-noncurrent Redeemable noncontrolI l ing interest 44,559 44,030 8,017 8,805 7,321 149 Total Liabilities $123,412 $117,553 $115,970 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 2,685 2,785 85,777 2,122 90,021 (11,597) $ 80,546 76,566 (2,996) (7,168) $ 81,394 $76,255 5,084 4,543 3,065 $81,339 83,611 $85,937 $203,490 $204,751 $199,581 Source: Wal-Mart Stores, Inc. Forms 10-K for the three fiscal years ended January 31, 2014, 2015, and 2016. Income Statements for the Fiscal Years Ended January 31 (amounts in millions; allow for rounding) (Integrative Case 1.1) 2014 2015 2016 $482,130 Revenues $476,294 $ 485,651 Cost of goods sold 358,069 $118,225 365,086 $120,565 360,984 $121,146 Gross Profit Selling, general, and administrative expenses Operating Profit 91,353 26,872 93418 97,041 $ 27,147 $24,105 Interest income 119 113 81 Interest expense (2,335) (2,548) (2,461) 24,799 Income before Tax 24,656 21,638 Income tax expense Income (Loss) from discontinued operations 8,105 7,985 6,558 144 285 Net Income $17,099 15,080 (386) $14,694 16,695 (673) $ 16,022 (2,409) $13,613 Net income attributable to noncontrolling interests (736) Net Income Attributable to Common Shareholders 16,363 Other comprehensive income items Comprehensive Income (4,172) $12,191 (4,429) $10,265 Source: Wal-Mart Stores, Inc. Forms 10-K for the three fiscal years ended January 31, 2014, 2015, and 2016 Exhibit 1.21 Wal-Mart Stores, Inc. Statements of Cash Flows for the Three Fiscal Years Ended January 31 (amounts in millions; allow for rounding) (Integrative Case 1.1) 2014 2015 2016 $17,099 Net Income $16,695 $15,080 Add back depreciation and amortization expenses 8,870 9,173 9,454 Deferred income taxes (503) (569) (672) (279) (566) (1,667) (Increase) Decrease in accounts receivable (19) (Increase) Decrease in inventories (1,229) (703) 2,008 (472) Increase (Decrease) in accounts payable Increase (Decrease) in income taxes payable Increase (Decrease) in other current liabilities 531 2,678 166 (1,224) 103 1,249 1,303 (Income) Loss from discontinued segments (285) (144) O 785 Exhibit 1.21 (Continued) Proceeds from sales of property, plant, and equipment Property, plant, and equipment acquired Investments acquired 727 570 635 (13,115) (12,174) (11,477) Other investment transactions (138) 479 167 $(12,526) $(11,125) $(10,675) Net Cash Flow from Investing Activities Increase (Decrease) in short-term borrowing Increase (Decrease) in long-term borrowing Share repurchases-treasury stock Dividend payments 911 1,235 (6,288) 1,270 (1,015) (6,185) 2,104 (4,393) (4,112) (6,683) (6,139) (982) (6,294) Other financing activities Net Cash Flow from Financing Activities Effects of exchange rate changes on cash Net Change in Cash Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year (2,558) (2,853) $(15,071) (514) $(10,789) $(16,122) (1,022) $ (500) S 7,781 $ 7,281 1,854 $ (430) $ 9,135 $ 8,705 7,281 9,135 Source: Wal-Mart Stores, Inc. Forms 10-K for the three fiscal years ended January 31, 2014, 2015, and 2016. Overview of Financial Reporting, Financial Statement Analysis, and Valuation 64 CHAPTER 1 o. Why does Walmart show increases in inventory as subtractions when computing cash flow from operations? p. Why does Walmart show increases in accounts payable as additions when computing cash flow from operations? q. What was the single largest use of cash by Walmart during this three-year period? How does that use of cash reflect Walmart's business strategy? r. What was Walmart's single largest use of cash for financing activities during this three- year period? What does that imply about Walmart's financial position and performance