Refer to the following:

Target Corporation in Appendix B,

Walmart Incorporated in Appendix C, and the

Industry Ratio Report in Appendix D.

Required:

1. Compute the current ratio for both companies.

2. Compared to each other, are these two companies more or less able to satisfy short-term obligations with current assets?

3. How does each company compare to the industry regarding the current ratio?

4. How is the current ratio influenced by these companies' choice to lease space instead of buying facilities? 5. Which company's current ratio increased

from the year ended in 2020 to the year

ended in 2021?

INDUSTRY RATIO REPORT Retail Industry In October 2020 , we repurchased $1.77 billion of debt before its maturity at a market value of $2.25 billion. We recognized a loss on early retirement of $512 million, which was recorded in Net Interest Expense. In March 2020, we issued unsecured fixed rate debt of $1.5 billion at 2.250 percent that matures in April 2025 and $1.0 billion at 2.650 percent that matures in September 2030. In January 2020 , we issued $750 million of 10 -year unsecured fixed rate debt at 2.350 percent, and separately, we redeemed $1.0 billion of 3.875 percent unsecured fixed rate debt before its maturity. We recognized a loss on early retirement of approximately $10 million, which was recorded in Net Interest Expense. APPENDIX B B-19 In March 2019, we issued $1.0 billion of 10 -year unsecured fixed rate debt at 3.375 percent, and in June 2019 , we repaid $1.0 billion of 2.3 percent unsecured fixed rate debt at maturity. We obtain short-term financing from time to time under our commercial paper program. We have a committed $2.5 billion unsecured revolving credit facility that expires in October 2023 . No balances were outstanding at any time during 2020, 2019, or 2018. Substantially all of our outstanding borrowings are senior, unsecured obligations. Most of our longterm debt obligations contain covenants related to secured debt levels. In addition to a secured debt level covenant, our credit facility also contains a debt leverage covenant. We are, and expect to remain, in compliance with these covenants, which have no practical effect on our ability to pay dividends. Walmart Inc. Consolidated Statements of Income Walmart Inc. Consolidated Statements of Comprehensive Income Consolidated Statements of Operations Target See accompanying Notes to Consolidated Financial Statements. Consolidated Statements of Comprehensive Income See accompanying Notes to Consolidated Financial Statements. 9/19 B-10 APPENDIX B Consolidated Statements of Financial Position Common Stock Authorized 6,000,000,000 shares, $0.0833 par value; 500,877,129 shares issued and outstanding as of January 30,2021;504,198,962 shares issued and outstanding as of February 1 , 2020. Preferred Stock Authorized 5,000,000 shares, $0.01 par value; no shares were issued or outstanding during any period presented. 11. Property and Equipment Target Property and equipment, including assets acquired under finance leases, is depreciated using the straight-line method over estimated useful lives or lease terms if shorter. We amortize leasehold improvements purchased after the beginning of the initial lease term over the shorter of the assets' useful lives or a term that includes the original lease term, plus any renewals that are reasonably certain at the date the leasehold improvements are acquired. Depreciation expense for 2020, 2019, and 2018 was $2.5 billion, $2.6 billion, and $2.5 billion, respectively, including depreciation expense included in Cost of Sales. For income tax purposes, accelerated depreciation methods are generally used. Repair and maintenance costs are expensed as incurred. Facility pre-opening costs, including supplies and payroll, are expensed as incurred. We review long-lived assets for impairment when store performance expectations, events, or changes in circumstances-such as a decision to relocate or close a store or distribution center, discontinue a project, or make significant software changes-indicate that the asset's carrying value may not be recoverable. We recognized impairment losses of \$62 million, \$23 million, and \$92 million during 2020. 2019 , and 2018, respectively. For asset groups classified as held for sale, measurement of an impairment loss is based on the excess of the carrying amount of the asset group over its fair value. We estimate fair value by obtaining market appraisals, obtaining valuations from third-party brokers, or using other valuation techniques. Impairments are recorded in SG\&A Expenses. 13. Goodwill and Intangible Assets Goodwill totaled $631 million and $633 million as of January 30, 2021, and February 1, 2020, respectively. No impairments were recorded in 2020, 2019, or 2018 as a result of the annual goodwill impairment tests performed. Intangible assets, net of accumulated amortization, totaled \$ 37 million and \$53 million as of January 30,2021 , and February 1,2020 , respectively, and primarily related to trademarks and customer relationships. We use both accelerated and straight-line methods to amortize definite-lived intangible assets over 4 to 15 years. The weighted average life of intangible assets was 8 years as of January 30 , 2021. Amortization expense was \$15 million, \$13 million, and \$14 million in 2020, 2019, and 2018 , respectively, and is estimated to be less than $15 million annually through 2025 . 17/19 B-18 APPENDIX B 14. Accrued and Other Current Liabilities (a) We retain a substantial portion of the risk related to general liability and workers' compensation claims. We estimate our ultimate cost based on analysis of historical data and actuarial estimates. General liability and workers' compensation liabilities are recorded at our estimate of their net present value. 16. Commercial Paper and Long-Term Debt As of January 30,2021 , the carrying value and maturities of our debt portfolio were as follows: (a) Reflects the dollar weighted average stated interest rate as of year-end. In October 2020, we repurchased $1.77 billion of debt before its maturity at a market value of $2.25 billion. We recognized a loss on early retirement of \$512 million, which was recorded in Net Interest Expense. Consolidated Statements of Shareholders' Investment We declared $2.70,$2.62, and $2.54 dividends per share for the twelve months ended January 30,2021 . February 1, 2020, and February 2, 2019, respectively. See accompanying Notes to Consolidated Financial Statements. In October 2020 , we repurchased $1.77 billion of debt before its maturity at a market value of $2.25 billion. We recognized a loss on early retirement of $512 million, which was recorded in Net Interest Expense. In March 2020, we issued unsecured fixed rate debt of $1.5 billion at 2.250 percent that matures in April 2025 and $1.0 billion at 2.650 percent that matures in September 2030. In January 2020, we issued $750 million of 10 -year unsecured fixed rate debt at 2.350 percent, and separately, we redeemed $1.0 billion of 3.875 percent unsecured fixed rate debt before its maturity. We recognized a loss on early retirement of approximately $10 million, which was recorded in Net Interest Expense. APPENDIXB B-19 In March 2019, we issued $1.0 billion of 10 -year unsecured fixed rate debt at 3.375 percent, and in June 2019 , we repaid $1.0 billion of 2.3 percent unsecured fixed rate debt at maturity. We obtain short-term financing from time to time under our commercial paper program. We have a committed $2.5 billion unsecured revolving credit facility that expires in October 2023. No balances were outstanding at any time during 2020, 2019, or 2018. Substantially all of our outstanding borrowings are senior, unsecured obligations. Most of our longterm debt obligations contain covenants related to secured debt levels. In addition to a secured debt level covenant, our credit facility also contains a debt leverage covenant. We are, and expect to remain, in compliance with these covenants, which have no practical effect on our ability to pay dividends. 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 fiscal 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 accrued 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 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 Ianuary 21 onl and 300 (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. 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. 15/16 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 11. Property and Equipment Target Property and equipment, including assets acquired under finance leases, is depreciated using the straight-line method over estimated useful lives or lease terms if shorter. We amortize leasehold improvements purchased after the beginning of the initial lease term over the shorter of the assets' useful lives or a term that includes the original lease term, plus any renewals that are reasonably certain at the date the leasehold improvements are acquired. Depreciation expense for 2020, 2019 , and 2018 was $2.5 billion, $2.6 billion, and $2.5 billion, respectively, including depreciation expense included in Cost of Sales. For income tax purposes, accelerated depreciation methods are generally used. Repair and maintenance costs are expensed as incurred. Facility pre-opening costs, including supplies and payroll, are expensed as incurred. We review long-lived assets for impairment when store performance expectations, events, or changes in circumstances-such as a decision to relocate or close a store or distribution center, discontinue a project, or make significant software changes-indicate that the asset's carrying value may not be recoverable. We recognized impairment losses of \$62 million, \$23 million, and \$92 million during 2020. 2019 , and 2018, respectively. For asset groups classified as held for sale, measurement of an impairment loss is based on the excess of the carrying amount of the asset group over its fair value. We estimate fair value by obtaining market appraisals, obtaining valuations from third-party brokers, or using other valuation techniques. Impairments are recorded in SG\&A Expenses. 13. Goodwill and Intangible Assets Goodwill totaled $631 million and $633 million as of January 30, 2021, and February 1, 2020, respectively. No impairments were recorded in 2020, 2019, or 2018 as a result of the annual goodwill impairment tests performed. Intangible assets, net of accumulated amortization, totaled \$ 37 million and \$53 million as of January 30,2021 , and February 1,2020, respectively, and primarily related to trademarks and customer relationships. We use both accelerated and straight-line methods to amortize definite-lived intangible assets over 4 to 15 years. The weighted average life of intangible assets was 8 years as of January 30 , 2021. Amortization expense was \$ 15 million, \$13 million, and \$14 million in 2020, 2019, and 2018, respectively, and is estimated to be less than $15 million annually through 2025 . 17/19 B-18 APPENDIX B 14. Accrued and Other Current Liabilities (a) We retain a substantial portion of the risk related to general liability and workers' compensation claims. We estimate our ultimate cost based on analysis of historical data and actuarial estimates. General liability and workers' compensation liabilities are recorded at our estimate of their net present value. 16. Commercial Paper and Long-Term Debt As of January 30,2021 , the carrying value and maturities of our debt portfolio were as follows: In October 2020, we repurchased $1.77 billion of debt before its maturity at a market value of $2.25 billion. We recognized a loss on early retirement of \$512 million, which was recorded in Net Interest Expense. In March 2020, we issued unsecured fixed rate debt of $1.5 billion at 2.250 percent that matures in April 2025 and $1.0 billion at 2.650 percent that matures in September 2030 . 7. Fair Value Measurements Fair value measurements are reported in one of three levels based on the lowest level of significant input used: Level 1 (unadjusted quoted prices in active markets); Level 2 (observable market inputs, other than quoted prices included in Level 1); and Level 3 (unobservable inputs that cannot be corroborated by observable market data). (a) Carrying value approximates fair value because maturities are less than three months. (b) Initially valued at transaction price. Subsequently valued by reference to the market price of Target common stock. (c) Represents our investment in Casper common stock. (d) Valuations are based on observable inputs to the valuation model (e.g., interest rates and credit spreads). In 2020 and 2019 , we recorded pretax losses of $19 million and $41 million, respectively, related to our investment in Casper within Net Other (Income) / Expense. We sold our investment during 2020. B-16 APPENDIX B 8. Cash and Cash Equivalents Cash equivalents include highly liquid investments with an original maturity of three months or less from the time of purchase. Cash equivalents also include amounts due from third-party financial institutions for credit and debit card transactions. These receivables typically settle in five days or less. As of January 30, 2021, and February 1, 2020, we reclassified book overdrafts of $240 million and $209 million, respectively, to Accounts Payable and \$24 million and \$23 million, respectively, to Accrued and Other Current Liabilities. 9. Inventory The vast majority of our inventory is accounted for under the retail inventory accounting method (RIM) using the last-in, first-out (LIFO) method. Inventory is stated at the lower of LIFO cost or market. Inventory cost includes the amount we pay to our suppliers to acquire inventory, freight costs incurred to deliver product to our distribution centers and stores, and import costs, reduced by vendor income and cash discounts. Distribution center operating costs, including compensation and benefits, are expensed in the period incurred. Inventory is also reduced for estimated losses related to shrink and markdowns. The LIFO provision is calculated based on inventory levels, markup rates, and internally measured retail price indices. Under RIM, inventory cost and the resulting gross margins are calculated by applying a cost-to-retail ratio to the inventory retail value. RIM is an averaging method that has been widely used in the retail industry due to its practicality. The use of RIM will result in inventory being valued at the lower of cost or market because permanent markdowns are taken as a reduction of the retail value of inventory. Walmart Ine. Notes to Consolidated Financial Statements Note 1. Summary of Significant Accounting Policies General Walmart Ine. ("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 d through dividends or intercompany financing kart") minority shareholders; however, this cash Receivables Receivables are stated at their carrying values, net of a reserve for doubtful accounts, and are primarily due from the following: customers, which also includes insurance companies resulting from pharmacy sales, banks for customer credit, debit cards and electronic transfer transactions that take in excess of seven days to process; suppliers for 2021 and January 31, 2020, receivables from transactions with customers, net were $2.7 billion and $2.9 billion, respectively. 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 for the Walmart International segment is valued primarily by the retail inventory method of accounting. using the first-in, first-out ("FIFO") method. The retail inventory method of accounting results in inventory being valued at the lower of cost or market, since permanent markdowns are immediately recorded as a reduction of the retail value of inventory. The inventory at the Sam's Club segment is valued using the weighted-average cost LIFO method. As of January 31,2021 and January 31, 2020, the Company's inventories valued at LIFO approximated those inventories as if they were valued at FIFO. Property and Equipment Property and equipment are initially recorded at cost. Gains or losses on disposition are recognized as earned or incurred. Costs of major improvements are capitalized, while costs of normal repairs and maintenance are expensed as incurred. The following table summarizes the Company's property and equipment balances, and includes the estimated useful lives that are generally used to depreciate the assets on a straight-line basis: Leasehold improvements are depreciated or amortized over the shorter of the estimated useful life of the asset or the remaining expected lease term. Total depreciation and amortization expense for property and equipment, property under finance leases and financing obligations, property under capital leases and intangible assets for fiscal 2021 , under finance leases and financing obligations, property under capital leases and 2020 and 2019 was $11.2 billion, $11.0 billion and $10.7 billion, respectively. Leases For any new or modified lease, the Company, at the inception of the contract, determines whether a contract is or contains a lease. The Company records right-of-use ("ROU") assets and lease obligations for its finance and operating leases, which are initially recognized based on the discounted future lease payments over the term of the lease. As the rate implicit in the Company's leases is not easily determinable, the Company's applicable incremental borrowing rate is used in calculating the present value of the sum of the lease payments. Impairment of Long-Lived Assets Management reviews long-lived assets for indicators of impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The evaluation is performed at the lowest level of identifiable cash flows, which is at the individual store or club level. Undiscounted cash flows expected to be 11/16 generated by the related assets are estimated over the assets' useful lives based on updated projections. If the evaluation indicates that the carrying amount of the assets may not be recoverable, any potential impairment is measured based upon the fair value of the related asset or asset group as determined by an appropriate market appraisal or other valuation technique. Goodwill and Other Acquired Intangible Assets Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations and is allocated to the appropriate reporting unit when acquired. Other acquired intangible assets are stated at the fair value acquired as determined by a valuation technique commensurate with the intended use of the related asset. Goodwill and indefinite-lived intangible assets are not amortized; rather, they are evaluated for impaiment annually and whenever events or changes in circumstances indicate that the value of the asset may be impaired. Definite-lived intangible assets are considered long-lived assets and are amortized on a straight-line basis over the periods that expected economic benefits will be provided. Goodwill is assigned to the reporting unit which consolidates the acquisition. Components within the same reportable segment are aggregated and deemed a single reporting unit if the components have similar economic characteristics. As of January 31, 2021, the Company's reporting units consisted of Walmart U.S., Walmart International and Sam's Club. Goodwill is evaluated for impaiment using either a qualitative or quantitative approach for each of the Company's reporting units. Generally, a qualitative assessment is first performed to performing an assessment based on the qualitative factors, that the fair value of the reporting unit is more likely than a not less than the carrying amount, or that a fair value of the reporting unit substantially in excess of the carrying amount cannot be assured, then a quantitative goodwill impaiment test would be required. The quantitative test for goodwill impairment is performed by determining the fair value of the related reporting units. Fair value is measured based on the discounted cash flow method and relative market-based approaches. After evaluation, management determined the fair value of each reporting unit is significantly greater than the carrying amount and, accordingly, the Company has not recorded any impairment charges related to goodwill. The following table reflects goodwill activity, by reportable segment, for fiscal 2021 and 2020: (1) Represe 2021 . Intangible assets are included in other long-term assets in the Company's Consolidated Balance Sheets. As of January 31,2021 and 2020 , the Company had $4.9 billion and $5.2 billion, respectively, in indefinite-lived intangible assets which primarily consists of acquired trade names. There were no significant impairment charges related to intangible assets for fiscal 2021 . During fiscal 2020 , the Company incurred approximately $0.7 billion in impaiment charges related to its intangible assets. Investments Investments in equity securities with readily determablen values are recorded at fair value in other long-term assets in the Consolidated Balance Sheets with chand ir value recognized in other gains and losses in the out readily determinable fair values are carried at cost 12/16