Real World Case 3-7 (Static) Balance sheet and significant accounting policies disclosure; Walmart (LO3- 2,3-3,3-4, 3-8) The balance sheet and disclosure of significant accounting policies taken from the 2017 annual report of Walmart Stores Inc appear below. Use this information to answer the following questions HAL-HART STORES, INC Consolidated Balance Sheets (5 in millions except per share data) As of January 31, 2017 2016 $ 6,367 5,835 43,046 3.341 57.659 $8,705 5,624 44,469 1,441 60.239 Assets Current assets: Cash and cash equivalents Receivables (net) Inventories Prepaid expenses and other Total current assets Property and equipment Property and equipment Less accumulated depreciation Property and equipment (et) Property under capital leases: Property under capital lease and Financing obligations Less accumulated amortization Property under capital leases and financing obligations (net) Good Other assets and deferred charges 176,953 66.267) 110,171 179,492 (21782) 1072710 31,637 5,169) 5,468 17,837 3.921 11.09 (4.251 6,345 15,695 6.131 Seved 9,921 $198,825 D.131 $199,581 utner assets and deterreo charges Total assets Liabilities, Redeemable Noncontrolling Interest and Equity Current liabilities: Short-term borrowings Accounts payable Accrued liabilities Accrued income taxes Long-term debt due within one year Capital lease and financing obligations due within one year Total current liabilities Long-term debt tong-term capital lease and financing obligations Deferred income taxes and other Commitments and contingencies Equity: Common stock Capital in excess of par value tained earnings Accumulated other comprehensive income (Loss) Total Walmart shareholders equity Siinredeemable no controlling interest Total equity Total liabilities, redeemable noncontrolling Interest and equity $ 1,999 41,433 20,654 921 2,256 565 56,928 36,015 6,003 9,344 2,785 38,487 19,607 521 2,745 551 64,619 38,214 5,816 7,321 cos 305 2,371 89,354 $14,232) 77,798 2.232 80.23 $195,525 317 1,805 90,021 11,597) 80,546 3,065 B3,611 199,581 Soute NOTES TO CONSOLIDATED FINANCIAL STATEMENTS WAL-MART STORES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS WAL-MART STORES, INC. 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 equlvalents. 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 substantially all of the Walmart US segments 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, 2017 and January 31, 2016, 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 Digital retail sales include shipping revenue and are recorded upon delivery to the customer Customer purchases of chopping cards to be utilized in our stores or on our e-commerce websites 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 of 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 BOUCHE VOEL 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 2017 (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? 4. Compute Walmart's current ratio for 2017 (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 US Inventory? c. When does the company recognize revenue from service transactions? Does Walmart report these c. When does the company recognize revenue from service transactions? 1 Does Walmart report these separately? 2 a: Total assets b. Current assets c Current liabilities d Total equity e Retained earnings 1 Inventory milion million million million million million 3. What is Walmarts largest current asset? What is its largest current liability? 4 Current ratio 5 Does the company have any securities dassified as cash equivalents? Cost method used for US inventory Walmart recognizes revenue at the time