Please help me answer all these question one by one.

THE COMPANY IS GOING TO BE WALMART (PLEASE DO NOT USE AND PREVIOUS STUDENT ANSWERS) Remember, one-page memo first.

search the web for these financials (these can generally be viewed on the web under financial information or annual reports for public companies search by company name). Imagine you have been asked to prepare a brief management report summarizing the financial position and future prospects for the company chosen.

WALMART

Write a one-page memo summarizing your findings and making a recommendation as to whether an investment in the company is warranted. Be creative using your critical thinking skills. You may want to review chapter 13 for a guide as well.

Please include:

1) Comment on EPS performance

2) Utilize chapter 13 concepts to analyze financial position of company

3) Analysis of capital structure

4) What is the short-term and long-term strategy of the company? Is there adequate planning and resources for their plans?

5) Evaluate the companys overall value

Other possible suggestions:

1) Are they positioned for long-term growth as well as short-term opportunities?

2) Comment on dividend policy

3) What is the current debt status?

4) Analyze the companys cash flows

5) Evaluate profitability relative to sales, assets, equity and share value

6) Assess liquidity / risk

7) Analyze inventory management

SICS OF ANALYSIS its ineation sces, the use of comprisons, und issues i Purpose of Analysis Iaternal users of accoenting informalion manage and operate the c Financial statemtent analysis applias analy tical bcxods so fimancial s for making business decisions. This section describes the parpose of e intereal users is to provide strutegie intormations to improve effectiveness. masagers, oricers, and internal anditons The purpose of fimancial mpny Estersal users of accounting inkensation are m directly involved in t External users rely on financial statement analysis in pursaing their owine and creditors awess company prospects to make investing and lendin ment's decissions, S analyzes rinancial statements in monitoring financial satement infor mation in estahlishing credit serms. Auditors use f assesing the Tair presentation" of finuticial results. Analyst ser ecommend M LStandard & Poor's use financial statements in making buy-sell r ting credit ratings The common goal of these users is to evaluate company performance and r nancial This inclaxes evaleating [l) pest snd current performance, (2) current financial ps future performaace and risk. Building Blocks of Analysis Financial statement analysis focuses on one or more elements od a cor tioa ar performance. We emphasize tour bulading tNocks of financial st stmemem analys Liqguidity and efficiency shility to meet short-term obligations and to generale revenues * Solvency-ability to generate future revenues and meet lon Profitability-ability to provide financial rewards to attract and retain fina e Market pruspects-ability to generate positive market expectations ng-termS bligaivn The four buailding blocks highlight different aspects of financial condition o mance, yet they are interrelated Decision Insight Chips and Brokers The phrase ue chips refers so stock of big. profitoble companies, The phrose cone poker, where the most vaduibko chips are blue. The serm brokers refers to thase who eescune orders to buyw stock. The term comes tom wne retalers-rdviduas who broach Ibreaki wine casks Information for Analysis Financial analysis uses general-purpose financial statements that include the (1) statement, (2) balance sheet, (3) statement of stockhokders' equity (or statement,of retaacl eamings), (4) statement of cash flows, and (5) notes to these statements Financial reporting is the communication of financial information sefil it making investment, credit, and other business decisions, Fiaarcial eporting inclasa general purpose financial statements, information from SEC 4a-K and other filing press releases, shareholders' meetings, forecasts, manage reports etters, and audires and Analysis (MDA) is one esample of wsel ts. Apple's MD&A available at Iovestr poe.c begins with an overview. tolliowed results followed by final few parts discuss legl proeedings, nao d d risks from intcrest rate and foreign e n point in understanding a s for Comparisons The MD&A financial statements. we use standards (henchmarks) for C2 The company's current performance juowporiations between financial items, Applec s rrens s prior years' net income and in relation t inome, for insunce.cn be ompetitors provide standards for comparisons, Coca-Cola's profis mup can be compared with PepsiCo's profit margin. dustry statistics provide standards of reatt comparisons Intel's profit m coepir jr assance, can he compared wide standards with the industry's profit margin. can he pre ailelitiese the 2: i level for the current ratio or I:1 level for the acid-sest ratio rls of thumb) Standards of comparisons can develop from esperience a selected competitor or group of conmipetitors are often best. Intracomuny measures are also good. Guidelines can be applicd, bot only it they seem rcaso recent experience Tools of Analysis The t ools of financial statement analysis are , Hiorisontal analysis compurison of a compuny's financia cndision nd perfsrmance across tiine. lertical analysis -comparison of a company's financial coedition and performance to a hase amount. 8 Ratio o analysis-measurement of key relations between financial statement items Theremuinder of this chapter describes these analysis tools and how to apply them Decision Insight latig Frauds Horizontal, vertical and ratio analysis tools con uncover baud by deyingut out o opettiirs Oe can then folow up and ask questions that can enhe ldern, alogicalresents wich suspicions of traud. Many past traud schemes coud tirve been isentified much eaer had pecoe e oos and pressured manogement tor explanations. ORIZONTAL ANALYSIS iringtal analysis refers to examina al analysis comes from the len bisx comparative financial statements financial statement data acress me The term for right-to-lett) movement of our eyes as w icon Comparative Statements e inancial statements show fingial amounts in side-h-s ection explains how to compute dollar changes ormat Using Apple's "a single statement, called a comparait r comparative statements. Dollar Changes and Percent Changes Comparing finue time periods-two to three years-is oten doee by snalyzing ch Nc analysis includes analyzing dellar amount changes and percent rekevant because small dollar changes can yield large percent chatmang importance. For instance, a SO% change from a base figure or a S0% change from a hase amount ot $100,000. Reference to dollar s spective oe the inepor lance of changes We compule the dlur coee item as follows: Dollar change Analysis period amount Base perioa Anasperiat is the soine or period of time for the financial stt er is the point or period of time for the finaocial stalements he prior year is commonty usod as a buse period. We compute the perrent ce under tungs by the bse period amoeunt and then muliplying this uuntity h iter b Analysis period amount-Base period auou Base period amount Percent change