Question 1: Marks: 7+7+8+8=30 Required: Describe the current financial position of this company and include the following components, along with an interpretation for each of the ratios used: Solvency ratios Liquidity ratios Short term debt paying ability Profitability ratios Condensed Consolidated Income Statement (Unaudited) - USD ($) shares in Millions, Apr. 30, 2020 Apr. 30, 2019 Revenues: Net sales $ 133,672 $ 122,949 Membership and other income 950 976 Total revenues 134,622 123,925 Costs and expenses: Cost of sales 102,026 93,034 Operating, selling, general and administrative expenses 27,372 25,946 Operating income 5,224 4,945 Interest: Debt 510 588 Finance lease 82 85 Interest income (43) (48) Interest, net 549 625 Other (gains) and losses (721) (837) Income before income taxes 5,396 5,157 Provision for income taxes 1,322 1,251 Consolidated net income 4,074 3,906 Consolidated net income attributable to noncontrolling interest (84) (64) Consolidated net income attributable to Walmart $ 3,990 $ 3,842 Net income per common share: Basic net income per common share attributable to Walmart (in dollars per share) $ 1.41 $ 1.34 Diluted net income per common share attributable to Walmart (in dollars per share) $ 1.40 $ 1.33 Weighted-average common shares outstanding: Basic (shares) 2,831 2,869 Diluted (shares) 2,849 2,886 Dividends declared per common share (in dollars $ 2.16 $ 2.12 Cond. Consolidated Balance Sheets ($ in Millions Apr. 30, 2020 Apr. 30, 2019 Current assets: Cash and cash equivalents $ 14,930 $ 9,255 Receivables, net 5,029 5,342 Inventories 41,217 44,751 Prepaid expenses and other 2,152 2,391 Total current assets 63,328 61,739 Property and equipment, net 101,872 104,604 Operating lease right-of-use assets 16,895 16,833 Finance lease right-of-use assets, net 4,611 3,804 Goodwill 29,416 31,416 Other long-term assets 16,770 16,148 Total assets 232,892 234,544 Current liabilities: Short-term borrowings 4,048 4,828 Accounts payable 44,096 45,110 Dividends payable 4,588 4,551 Accrued liabilities 20,377 21,023 Accrued income taxes 1,303 729 Long-term debt due within one year 5,983 1,464 Operating lease obligations due within one year 1,729 1,748 Finance lease obligations due within one year 523 435 Total current liabilities 82,647 79,888 Long-term debt 43,006 47,425 Long-term operating lease obligations 15,669 15,719 Long-term finance lease obligations 4,474 3,810 Deferred income taxes and other 12,986 12,792 Commitments and contingencies Equity: 158,782 Common stock 284 286 Capital in excess of par value 2,983 2,734 Retained earnings 81,141 76,276 Accumulated other comprehensive loss (16,168) (11,091) Total Walmart shareholders' equity 68,240 68,205 Noncontrolling interest 5,870 6,705 Total equity 74,110 74,910 Total liabilities and equity $ 232,892 $ 234,544 Increase (Decrease) in Stockholders' Equity [Roll Forward] Consolidated net income 4,074 Other comprehensive income (loss), net of income taxes (4,075) Dividends declared (6,117) Statement of Stockholders' Equity [Abstract] Apr. 30, 2020 Apr. 30, 2019 Dividends declared (in dollars per share) $ 2.16 $ 2.12 Condensed Consolidated Statements of Cash Flows $ in Millions Apr. 30, 2020 Apr. 30, 2019 Cash flows from operating activities: Consolidated net income $ 4,074 $ 3,906 Adjustments to reconcile consolidated net income to net cash Depreciation and amortization 2,791 2,714 Unrealized (gains) and losses (783) (783) Deferred income taxes 84 124 Other operating activities (51) 75 Changes in certain assets and liabilities, Receivables, net 924 970 Inventories 2,221 (421) Accounts payable (1,183) (1,854) Accrued liabilities (2,109) (1,514) Accrued income taxes 1,049 346 Net cash provided by operating activities 7,017 3,563 Cash flows from investing activities: Payments for property and equipment (1,752) (2,205) Proceeds from the disposal of property and equipment 60 42 Proceeds from the disposal of certain operations 0 833 Payments for business acquisitions, net of cash acquired (10) (56) Other investing activities 6 251 Net cash used in investing activities (1,696) (1,135) Cash flows from financing activities: Net change in short-term borrowings 3,542 (399) Proceeds from issuance of long-term debt 0 3,978 Repayments of long-term debt 0 (364) Dividends paid (1,529) (1,520) Purchase of Company stock (723) (2,135) Dividends paid to noncontrolling interest 0 (96) Other financing activities (725) (310) Net cash provided by (used in) financing activities 565 (846) Effect of exchange rates on cash, cash equivalents and restricted cash (415) (46) Net increase in cash, cash equivalents and restricted cash 5,471 1,536 Cash, cash equivalents and restricted cash at beginning of year 9,514 7,756 Cash, cash equivalents and restricted cash at end of period $ 14,985 $ 9,292 Net Income Per C. Stock, shares in Units, shares in Millions, Apr. 30, 2020 Apr. 30, 2019 Consolidated net income $ 4,074 $ 3,906 Consolidated net income attributable to noncontrolling interest (84) (64) Consolidated net income attributable to Walmart $ 3,990 $ 3,842 Weighted-average common shares outstanding, basic (in shares) 2,831 2,869 Dilutive impact of share-based awards (in shares) 18 17 Weighted-average common shares outstanding, diluted (in shares) 2,849 2,886 Weighted-average common shares outstanding: Basic (shares) 2,831 2,869 Diluted (shares) 2,849 2,886