Refer to the financial statements of Walmart Incorporated in Appendix C.

Required:

1. What amount does the company report for common stock for the most recent year?

Note: Enter your answers in millions, (for example, 5.5 million should be entered as 5.5 rather than 5,500,000).

2. What is the amount of total liabilities at the end of the most recent year?

Note: Enter your answers in millions, (for example, 5.5 million should be entered as 5.5 rather than 5,500,000).

3. What is the company's current ratio for the most recent year?

Note: Round your answers to 2 decimal places.

4. If the company were liquidated at the end of the most recent year, are the shareholders guaranteed to receive $87,531 (total equity)?

5. Regarding your answer to 4. above, select the appropriate answer.

A. By law, shareholders are entitled to receive the amount in Retained Earnings of $88,763.

B. Total equity is a residual balance; shareholders will receive what remains in cash and assets after the creditors have been satisfied.

C. Shareholders are entitled to receive the total equity because that amount represents the residual interest to shareholders.

D. Walmart shareholders are guaranteed to receive $80,925 and those with a noncontrolling interest are entitled to receive $6,606

Note 6. Short-term Borrowings and Long-term Debt Short-term borrowings consist of commercial paper and lines of credit. Short-term borrowings as of January 31, 2021 and 2020 were $0.2 billion and $0.6 billion, respectively, with weighted-average interest rates of 1.9% and 5.0%, respectively. Short-term borrowings as of January 31,2020 were primarily outside of the U.S. The Company has various committed lines of credit in the U.S. to support its commercial paper program and are summarized in the following table: (1) In April 2020, the Company renewed and extended its existing 364-day revolving credit facility. The committed lines of credit in the table above mature at various times between April 2021 and May 2024, carry interest rates generally ranging between LIBOR plus 10 basis points and LIBOR plus 75 basis points, and incur commitment fees ranging between 1.5 and 4.0 basis points. In conjunction with the committed lines of credit listed in the table above, the Company has agreed to observe certain covenants, the most restrictive of which relates to the maximum amount of secured debt. Additionally, the Company has syndicated and fronted letters of credit available which totaled $1.8 billion as of January 31,2021 and 2020 , of which $1.8 billion and \$1.6 billion was drawn as of January 31,2021 and 2020, respectively. The Company's long-term debt, which includes the fair value instruments, consists of the following as of January 31,2021 and 2020: (1)The average rate represents the weighted-average stated rate for each corresponding debt category, based on year-end balances and year-end interest rates. (2)Includes deferred loan costs, discounts, fair value hedges, foreign-held debt and secured debt. 15/1 APPENDIX C C-15 Annual maturities of long-term debt during the next five years and thereafter are as follows: Debt Issuances There were no long-term debt issuances in fiscal 2021. Information on long-term debt issued during fiscal 2020 , for general corporate purposes, is as follows: The fiscal 2020 issuances are senior, unsecured notes which rank equally with all other senior, unsecured debt obligations of the Company, and are not convertible or exchangeable. These issuances do not contain any financial covenants which restrict the Company's ability to pay dividends or repurchase company stock. Advertising Costs Advertising costs are expensed as incurred, consist primarily of print, television and digital advertisements and are recorded in operating, selling, general and administrative expenses in the Company's Consolidated Statements of Income. In certain limited situations, reimbursements from suppliers that are for specific, incremental and identifiable advertising costs are recognized as a reduction of advertising costs in operating, selling, general and administrative expenses. Advertising costs were $3.2 billion, \$3.7 billion and \$3.5 billion for fiscal 2021, 2020 and 2019, respectively. Note 3. Shareholders' Equity The total authorized shares of $0.10 par value common stock is 11.0 billion, of which 2.8 billion were issued and outstanding as of January 31,2021 and 2020. Share Repurchase Program From time to time, the Company repurchases shares of its common stock under share repurchase programs authorized by the Company's Board of Directors. All repurchases made during fiseal 2021 were made under the $20.0 billion share repurchase program approved in October 2017, of which authorization for $3.0 billion of share repurchases remained as of January 31,2021 . On February 18,2021, the Board of Directors approved a new $20.0 billion share repurchase program which, beginning February 22, 2021, replaced the previous share repurchase program. Any repurchased shares are constructively retired and returned to an unissued status. The Company regularly reviews share repurchase activity and considers several factors in determining when to execute share repurchases, including, among other things, current cash needs, capacity for leverage, cost of borrowings, results of operations and the market price of the Company's common stock. The following table provides, on a settlement date basis, the number of shares repurchased, average price paid per share and total amount paid for share repurchases for fiscal 2021, 2020 and 2019: Note 5. Accrued Liabilities The Company's accrued liabilities consist of the following as of January 31, 2021 and 2020: (1)Liabilities held for sale relate to the Company's operations in Japan and the U.K. classified as held for sale as of January 31 , 2021. (2)Accrued wages and benefits include accrued wages, salaries, vacation, bonuses and other incentive plans. (3) Self-insurance consists of insurance-related liabilities, such as workers' compensation, general liability, auto liability, product liability and certain employee-related healthcare benefits. (4)Accrued non-income taxes include accrued payroll, property, value-added, sales and miscellaneous other taxes. (5)Other acerued liabilities consist of various items such as interest, maintenance, utilities, legal contingeneies, and advertising. 14/1 C.14 APPENDIX C Note 6. Short-term Borrowings and Long-term Debt Short-term borrowings consist of commercial paper and lines of eredit. Short-term borrowings as of January 31, 2021 and 2020 were $0.2 billion and $0.6 billion, respectively, with weighted-average interest rates of 1.9% and 5.0%, respectively. Short-term borrowings as of January 31,2020 were primarily outside of the U.S. The Company has various committed lines of credit in the U.S. to support its commercial paper program and are summarized in the following table: (1) In April 2020, the Company renewed and extended its existing 364-day revolving eredit facility, The committed lines of eredit in the table above mature at various times between April 2021 and May 2024, carry interest rates generally ranging between LIBOR plus 10 basis points and LIBOR plus 75 basis points, and incur commitment fees ranging between 1.5 and 4.0 basis points. In conjunction with the committed lines of credit listed in the table above, the Company has agreed to observe certain covenants, the most restrictive of which relates to the maximum amount of secured debt. Additionally, the Company has syndicated and fronted letters of credit available which totaled \$1.8 billion as of January 31,2021 and 2020 , of which \$1.8 billion and \$1.6 billion was drawn as of January 31,2021 and 2020 , respectively. The Company's long-term debt, which includes the fair value instruments, consists of the following as of Ianuars 21 OM 1 and 20%. (1)The average rate represents the weighted-average stated rate for each corresponding debt category, based on year-end balances and year-end interest rates. (2)Includes deferred loan costs, discounts, fair value hedges, foreign-held debt and secured debt. Walmart Ine. Notes to Consolidated Financial Statements Note 1. Summary of Significant Accounting Policies General Walmart Inc. ("Walmart" or the "Company") helps people around the world save money and live better - anytime and anywhere - by providing the opportunity to shop in retail stores and through eCommerce. Through innovation, the Company is striving to continuously improve a customer-centric experience that seamlessly integrates eCommerce and retail stores in an omni-channel offering that saves time for its customers. The Company's operations comprise three reportable segments: Walmart U.S., Walmart International and Sam's Club. Principles of Consolidation The Consolidated Financial Statements include the accounts of Walmart and its subsidiaries as of and for the fiscal years ended January 31, 2021 ("fiscal 2021"), January 31, 2020 ("fiscal 2020") and January 31, 2019 ("fiscal 2019"). Intercompany accounts and transactions have been eliminated in consolidation. The Company consolidates variable interest entities where it has been determined that the Company is the primary beneficiary of those entities' operations. Investments for which the Company exercises significant influence but does not have control are accounted for under the equity method. These variable interest entities and equity method investments are immaterial to the Company's Consolidated Financial Statements. The Company's Consolidated Financial Statements are based on a fiscal year ending on January 31 for the United States ("U.S.") and Canadian operations. The Company consolidates all other operations generally using a onemonth lag and based on a calendar year. There were no significant intervening events during the month of January 2021 related to the operations consolidated using a lag that materially affected the Consolidated Financial Statements. Use of Estimates The Consolidated Financial Statements have been prepared in conformity with U.S. generally accepted accounting principles. Those principles require management to make estimates and assumptions, including potential impacts arising from the COVID-19 pandemic and related government actions, that affect the reported amounts of assets and liabilities. Management's estimates and assumptions also affect the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. Cash and Cash Equivalents The Company considers investments with a maturity when purchased of three months or less to be cash equivalents. All credit card, debit card and electronic transfer transactions that process in less than seven days are classified as cash and cash equivalents. The amounts due from banks for these transactions classified as cash and cash equivalents totaled $4.1 billion and $1.7 billion as of January 31,2021 and 2020 , respectively. The Company's cash balances are held in various locations around the world. Of the Company's $17.7 billion and \$9.5 billion in cash and cash equivalents as of January 31,2021 and January 31,2020 , approximately 40% and 80% were held outside of the U.S., respectively. Cash and cash equivalents held outside of the U.S. are generally utilized to support liquidity needs in the Company's non-U.S. operations. The Company uses intercompany financing arrangements in an effort to ensure cash can be made available in the country in which it is needed with the minimum cost - As of January 31,2021 and 2020, cash and cash respectively, may not be freely transferable to t of January 31,2021 , approximately $1.0 billior arrangements subject to approval of Flipkart Pn oroximately $2.8 billion and $2.3 billion, is expected to be utilized to fund the operations 0 . laws or other restrictions. Of the $2.8 billion as xd through dividends or intercompany financing kart") minority shareholders; however, this cash Walmart Inc. Consolidated Statements of Income Walmart Inc. Consolidated Statements of Comprehensive Income