Ratios WALMART AMAZON Working Capital (15.984) 8522 Exampl Cument Assets 61,806 96,334 Curent Liabilities 77,790 87,812 Cument Ratio 1097 1098 Cument Assets Cument Liabilities Debt to Asset Ratio Total Debt Total Assets Retum on Equity 96,334 $ 75,101 87,812 $ 68,391 0.724 0.732 163,188 $ 119,099 $ 225,248 $ 162,648 18.672% 23.130 Net Income 11,588 $ 10,073 Shareholders Equity 62,060 $ 43,549 Retum on Assets Net Income Total Assets 5.145% 6.193 11,588 $ 10,073 $ 225,248 $ 162,648 Inventory Tumover 0.268 0318 Inventodes 44,435 $ 44,269 Cost of Goods Sold $ 165,536 $ 139,156 Days In Inventory Ending Inventory Cost of Goods Sold Accounts Receivable Tumover Accounts Recievable NetSales Times Interest Eamed Interest Expense Net Income Income Tax Expense 97.977 116.116 Days 44,435 $ 44,269 $ 165,536 $ 139,156 13.476 13.973 Days 20,816 $ 16,667 $ 280,522 $ 232,887 16 593 16.489 1600 1417 11588 10073 2374 1197 Depreciation and Amortization Exp 10987 10678 Free Cash Flow 8.394.000 14.326.000 Capital expenditums $ 16,861 $ 13,427 Property, Plant and Equipment Opeating Activities Dividens Gross Profit Rate Gross Profit NetSales 25,255 $ 27,753 5.184% 5.333% 14,541 $ 12,421 $ 280,522 $ 232,887 Profit Marin 4.131% 4.325% Net Income 11,588 $ 10,073 Net Sales $ 280,522 $ 232,887 Asset Tumover Total Assets NetSales 1245 1432 225,248 $ 162,648 $ 280,522 $ 232,887 $36.092 $31.750 18.929 9.500 20.497 17.174 20.816 16.677 Net income 96.334 75.101 72.705 61.797 25.141 14.754 14.548 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD OPERATING ACTIVITIES: Adjustments to reconcile net income to net cash from operating activities: Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, and Stock-based compensation Other operating expense (income), net 16.314 11.202 Other expense (income), net 225,248 162,648 Deferred income taxes 47.183 38.192 Changes in operating assets and liabilities: Inventories 32.439 23.663 8.190 6.536 Accounts payable 87.812 68.391 39.791 9.650 23,414 23,495 12,171 17,563 Amazon Financial Statement Consolidated Balance Sheets - USD ($)$ in Millions Dec. 31, 2019 Dec. 31, 2018 Consolidated Statements of Cash Flows - USD ($)$ in Millions Dec. 31, 2019 Dec. 31, 2018 Dec. 31, 2017 Cument assets: $280.522 $232.887 $177.866 Cash and cash equivalents Statement of Cash Flows [Abstract] Marketable securities Inventories Amazon Financial Statement Total net sales Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions Operating expenses: 12 Months Ended Cost of sales 165.536 139.156 111.934 Fulfilment Technology and content Marketing General and administrative Other operating expense (income), net Total operating expenses Operating income Interest income Interest expense Other income (expense), net Total non-operating income (expense) Income before income taxes Provision for income taxes 40.232 34.027 25.249 35.931 28.837 22.620 18.878 13.814 10.069 5.203 4.336 3.674 201 296 214 265.981 220.466 173.760 14.541 12.421 4.106 832 440 202 (1.6001 (1.417) (848) 203 (183) 346 (565) (1.160) (300) 13.976 11.261 3.806 (2.374) (1.197) (769) Equity method investment activity, net of tax (14) 9 (41 Net income Basic eamings per share $11.588 $10.073 $3.033 Accounts receivable, net and other Totalcument assets Property and equipment, net Operating leases Goodwill Other assets Total assets Cument liabilities: Accounts payable Accrued expenses and other Uneamed revenue Totalcument liabilities Long-term lease liabilities Long-term debt Other long-term liabilities $23.46 $20.68 $6.32 Commitments and contingencies (Note 7) Diluted eamings per share $23.01 $20.14 $6.15 Stockholders' equity: Weighted average shares used in computation of eamings per share: Basic (in shares) 494 487 480 Preferred stock, $0.01 par value: Authorized shares.500 Issued and outstanding shares-none Common stock, $0.01 par value: Authorized shares - 5,000 Issued shares - 507 and 514 Outstanding shares-484 0 0 Diluted (in shares) 504 500 493 Treasury stock, at cost (1.8371 (1837) Net product sales Total net sales Netservice sales Total net sales Additional paid-in capital 33.658 $160.408 $141.915 $118.573 Accumulated other comprehensive income (loss) Retained eamings $ 120.114 $90.972 $59.293 Total stockholders' equity Total liabilities and stockholders' equity 1986) $31.220 62,060 $225,248 26.791 (1.035) $19.625 43,549 $162,648 12 Months Ended Dec. 31, 2019 Dec. 31, $21,856 10,073 15.341 5.418 274 219 441 (1.314) (4.615) 3.263 472 1.151 30.723 (13.427) 2.104 (2.186) 8.240 (7.100) (12.369) 768 (668) (7.449) (337) (7.686) (351) 10.317 32.173 854 0 381 194 -1,184 0 10,615 $3,641 $1,362 Accounts receivable, net and other Accrued expenses and other Uneamed revenue Net cash provided by (used in) operating activities INVESTING ACTIVITIES: Purchases of property and equipment Proceeds from property and equipment sales and incentives Acquisitions, net of cash acquired, and other Sales and maturities of marketable securities Purchases of marketable securities Net cash provided by (used in) investing activities FINANCING ACTIVITIES: Proceeds from long-term debt and other Repayments of long-term debt and other Principal repayments of finance leases Principal repayments of financing obligations Net cash provided by (used in) financing activities Foreign currency effect on cash, cash equivalents, and restricted cash Net increase (decrease) in cash, cash equivalents, and restricted cash CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for interest on long-term debt Cash paid for operating leases Cash paid for interest on capital leases Cash paid for interest on finance leases Cash paid for interest on financing obligations Cash paid for income taxes, net of refunds Assets acquired under operating leases Property and equipment acquired under capital leases Property and equipment acquired under finance leases Property and equipment acquired under build-to-suit arrangements Walmart Financial Statements Consolidated Statements of Income-USD ($) shares in Millions, $ in Millions Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions 12 Months Ended Revenues: NetSales Membership and other income Total revenues Costs and expenses: Cost of sales Operating, selling, general and administrative expenses Operating Income Interest Debt Finance, capital lease and financing obligations Interest income Interest, net Loss on extinguishment of debt Other (gains) and losses Income before income taxes Provision for income taxes Consolidated net income Consolidated net income attributable to noncontrolling interest Consolidated net income attributable to Walmart Net income per common share: Basic net income per common share attributable to Walmart Diluted net income per common share attributable to Walmart Weighted average common shares outstanding: Basic (in shares) Diluted in shares) 12 Months Ended Jan. 31, 2020 Jan. 31, 2019 Jan. 31, 2018 519,926 510,329 495,761 Consolidated Balance Sheets USD ($)$ in Millions Jan. 31, 2020 Jan. 31, 2019 Cument assets: Cash and cash equivalents Receivables, net Inventories Consolidated Statements of Cash Flows - USD ($)$ in Millions 9.465 6.284 7.722 6.283 Cash flows from operating activities: 44,435 Consolidated net income Adjustments to reconcile income from continuing operations to net cash provided by operating activities: 44,269 4.038 523,964 4.076 514,405 4.582 500,343 Prepaid expenses and other Totalcument assets Property and equipment, net 1.622 3.623 Depreciation and amortization 61,806 61,897 Unrealized (gains) and losses 105.208 104.317 (Gains) and losses for disposal of business operations 394.605 385.301 373.396 Operating lease right of use assets 17.424 0 Asda pension contribution 108.791 107.147 106.510 Finance lease right of use assets, net 4.417 Defered income taxes 20,568 21,957 20,437 Property under capital lease and financing obligations, net 7,078 Goodwill 31.073 31.181 2.262 1975 1978 Other long-term assets 16.567 14.822 337 371 352 Total assets 236.495 219.295 (189) (217) (152) Cument liabilities: 2.410 2.129 2.178 Short term borrowings 575 5.225 0 0 3.136 Accounts payable 46.973 47.060 (1958) 8.368 0 Accrued liabilities 22,296 22,159 20.116 11.460 15.123 Accrued income taxes 280 428 4.915 4.281 4.600 Long-term debt due within one year 5.362 1876 15.201 7.179 10.523 Operating lease obligations due within one year 1.793 0 Loss on extinguishment of debt Other operating activities Changes in certain assets and liabilities, net of effects of acquisitions: Receivables, net Inventories Accounts payable Accrued liabilities Accrued income taxes Net cash provided by operating activities Cash flows from investing activities: Payments for property and equipment $ (320) $15091 $ (661) Finance lease obligations due within one year 511 0 $14,881.00 $6,670.00 $9,862.00 Capital lease and financing obligations due within one year 0 729 Proceeds from the disposal of property and equipment Proceeds from the disposal of certain operations Total curent liabilities 77.790 77.477 $5.22 S $2.28 $3.29 Long-term debt 43.714 43.520 Payments for business acquisitions, net of cash acquired Other investing activities 2 Long-term operating lease obligations 16.171 0 Netcash used in investing activities Long-term finance lease obligations 4.307 2.850.00 $2.17 $2.868.00 $2.08 2.929.00 $2.945.00 $2.04 2.995.00 Long-term capital lease and financing obligations 0 6.683 $3.010 Deferred income taxes and other 12,961 11,981 Commitme Equity: Common stock 284 288 Capital in excess of par value 3.247 2.965 Retained eamings 83.943 80.785 Repayment Cash flows from financing activities: Net change in short term borrowings Proceeds from issuance of long-term debt Premiums paid to extinguish debt Dividends paid Purchase of Company stock Dividends paid to noncontrolling interest Accumulated other comprehensive loss (12.805) (11.542) Purchase of noncontrolling interest Total Walmart shareholders' equity 74.669 72.496 Noncontrolling interest Total equity Total liabilities and equity 6.883 7.138 $81.552 $236,495 $79.634 $219,295 Other financing activities Netcash used in financing activities Effect of Exchange Rate on Cash, Cash Equivalents, and Restricted Cash Net increase (decrease) in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash at beginning of year Cash, cash equivalents and restricted cash at end of year Supplemental disclosure of cash flow information: Income taxes paid Interest Paid, Excluding Capitalized Interest, Operating Activities 12 Months Ended Jan. 31, 2020 Jan. 31, 2019 Jan. 31, 2018 $15.201 $7.179 $10.523 154 (300) (274) 186 (93) 25,255 (10.705) (10.344) 321 833 (56) 479 (9.128) (24.036) (4.6561 5.492 (1907) (3.784) 0 16.048) 15.7171 (555) 0 (908) (14.299) (69) 1.759 7.756 9.515 3.616 $2.464 10.987 (1.886) 10.678 10.529 3.516 0 15 (1.036) 4.850 0 320 (499) (304) 0 1,981 1,734 3.136 1,210 3.982 6.179 $2.348 $2.450 (1.074) (140) 1.831 4.085 183 27,753 928 (557) 28,337 519 (10.051) 378 876 1.046 (431) (375) (77) 19.0791 15.872 4.148 7.476 (13.061) 0 (3.059) (7.410) (6.124) (8.296) (431) (690) (8) (261) (2.537) (19.875) (438) 487 742 (130) 7.014 7.144 7.756 7.014 YOU MUST USE ALL FORMULAS AND CELL REFERENCES ON THE RATIOS PAGE FOR THE NUMBERS TO BE CONSIDERED FOR FULL CREDIT ON THE PROJECTS. You may type in the names of the items included in the ratios but you must use cell references and formulas for all of the computations and numbers. Failure to do so will result in up to a 100% point deduction. You are encouraged to get help from the tutors in the Accounting Lab. You can also get help by email. You can email your professor and you can email the accounting lab (accountinglab@wayne.edu). If you email both please do so in the same email. Replies will be a reply all so whoever replies the other will know. You will likely get a faster response if you email both. Response time for emails sent to the accounting lab should be within 7-8 hours. Also, there will be no timely response to project emails sent after 2p on the project due dates. Don't wait until the last minute. There will be no response to accounting lab emails on Sundays. PROJECT INFORMATION You have been given financial statements for Amazon and Walmart (Income Statement, Balance Sheet, and Statement of Cash Flows). For this project, you will use the information in those statements to compute the ratios requested on the Ratios Tab. Current year information is Fiscal or Calendar year for both companies. SUGGESTED STEPS FOR COMPLETION OF THE PROJECT: Determine what amounts are needed to calculate the ratios requested. For example you need Current Assets and Current Liabilities to compute the Working Capital. Enter the names of the items needed in the boxes in column A for each of the ratios. See Ratios Tab, column A for Working Capital. Next, use the cell reference function and any other necessary formulas to enter the numbers for each of the items for each of the companies in the boxes under the requested ratios. Again see Ratios Tab Columns C and E for the Current Ratio for Walmart and for Amazon. Next use the numbers you have entered to calculate the ratios requested. Again see the Ratios Tab Columns C and E for Current Ratio for Walmart and for Amazon. ROUND ALL RATIO AMOUNTS TO 3 DECIMAL PLACES Repeat the steps for each of the ratios listed on the Ratio Tab HINTS Assume all sales were on credit where necessary. Show all numbers as positives not negatives COGS can also be called Cost of Sales On Walmart's financial statements, interest expense is with interest revenue so you will need to adjust for this to get just interest expense Income Tax Expense can also be called the Provision for Income Taxes Remember to consider the Statement of Cash Flows when trying to determine cash spent. Use Consolidated Net Income for Net Income Use Total Equity when asked for Equity Final step So that we can see your use of formulas you must use the following steps to display your formulas for the ratios on the Ratios Formula Tab. Copy all of the Ratios information from the Ratios Tab to the Ratios formulas tab. Highlight the entire ratios information area and press the "ctrl" key and the "-" key. This will cause the formulas used to display instead of the numbers. Save your file with the formulas displayed on the Ratio Formulas Tab page and the numbers displayed on the Ratios Tab