Real World Case 3-5 (Static) Balance sheet and significant accounting policies disclosure; Walmart [LO32, 3-3, 3-4, 3-8] The balance sheet and disclosure of significant accounting policies taken from the January 31,2020 , annual report of Walmart Incorporated appear below. Use this information to answer the following questions: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS WALMART INCORPORATED 1 Summary of Significant Accounting Policies (in part) Cash and Cash Equivalents The Company considers investments with a maturity when purchased of three months or less to be cash equivalents. c. Cumeril mavmules d. Total equity e. Retained earnings f. Inventory 3. What is Walmart's largest current asset? What is its largest current liability? 4. Compute Walmart's current ratio for 2020. Note: Round your answer to 2 decimal places. 5. Identify the following items from the summary of significant accounting policies: a. Does the company have any securities classified as cash equivalents? b. What cost method does the company use for its U.S. inventory? c. When does the company recognize revenue from service transactions? 1 Summary of Significant Accounting Policies (in part) Cash and Cash Equivalents The Company considers investments with a maturity when purchased of three months or less to be cash equivalents. Inventories The Company values inventories at the lower of cost or market as determined primarily by the retail inventory method of accounting. using the last-in, first-out ("LIFO") method for the Walmart U.S. segment's inventories. The inventory at the Walmart International segment is valued primarily by the retail inventory method of accounting, using the first-in, first-out ("FIFO") method. At January 31 , 2020 and January 31, 2019, the Company's inventories valued at LIFO approximated those inventories as if they were valued at FIFO. Revenue Recognition The Company recognizes sales revenue, net of sales taxes and estimated sales returns, at the time it sells merchandise to the customer. eCommerce sales include shipping revenue and are recorded upon delivery to the customer. Customer purchases of shopping cards are not recognized as revenue until the card is redeemed and the customer purchases merchandise using the shopping card. The Company recognizes revenue from service transactions at the time the service is performed. Generally, revenue from services is classified as a component of net sales in the Company's Consolidated Statements of Income. source: Walmart Required: 1. Does Walmart separately report current assets versus long-term assets, and current liabilities versus long-term liabilities? 2. What amounts did Walmart report for the following items for 2020: Note: Enter your answers in millions. a. Total assets b. Current assets c. Current liabilities d. Total equity e. Retained earnings f. Inventory 3. What is Walmart's largest current asset? What is its largest current liability