Softbyte Corporation

Comparative Balance Sheets

December 31, 2012 and 2011

2012 2011

Assets

Cash $174,000 $117,000

Accounts Receivable 93,000 81,000

Merchandise Inventory 609,000 534,000

Equipment 333,000 297,000

Accumulated Depreciation- Equipment (156,000) (102,000)

Total Assets $1,053,000 $927,000

Liabilities & Equity

Accounts Payable $69,000 $96,000

Income taxes payable 27,000 24,000

Common Stock, $2 par value 582,000 558,000

Paid-in capital in excess

of par value, common stock 198,000 162,000

Retained Earnings 177,000 87,000

Total Liabilities & Equity $1,053,000 $927,000

Softbyte Corporation

Income Statement

For Year Ended December 31, 2012

Sales $1,992,000

Cost of goods sold 1,194,000

Gross profit 798,000

Operating expenses

Depreciation expense$54,000

Other expenses 501,000555,000

Income before taxes 243,000

Income taxes expense 42,000

Net income $201,000

Additional Information on Year 2012 Transactions

a.Purchased equipment for $36,000 cash.

b.Issued 12,000 shares of common stock for $5 cash per share.

c.Declared and paid $111,000 in cash dividends.

Required:complete statement of cash flows; report its cash inflows and cash outflows from operating activities according to the indirect method.

Softbyte Corporation

Statement of Cash Flows - Indirect Method

For Year Ended December 31, 2012

Operating Activities

Net income

Adjustments to reconcile net income

to net cash provided by operating activities

Depreciation

Increase in accounts receivable

Increase in inventory

Decrease in accounts payable

Increase in income tax payable

Net cash provided by operating activities

Investing Activities

Purchase of Equipment

Financing Activities

Issuance of common stock

Payment of dividends

Net cash used by financing activities

Net increase in cash

Cash at beginning of period

Cash at end of period

(Note:Questions 1-3 pertain to the information on Pages 1-2)

1.What is the net cash provided by operating activities?

A.$119,000

B.$122,000

C.$135,000

D. $144000

2.What is the net cash used by investing activities?

A.$(25,000)

B. $(28000)

C.$(36,000)

D.$(39,000)

3.What is the net cash used by financing activities?

A.$(45,000)

B.$(51,000)

C.$(53,000)

D.$(68,000)

Wal-Mart Stores Inc. (WMT)

Income Statement

View: Annual Data All numbers in thousands

Period Ending Jan 31, 2013 Jan 31, 2012 Jan 31, 2011

Total Revenue 469,162,000 446,950,000 421,849,000

Cost of Revenue 352,488,000 335,127,000 314,946,000Gross Profit 116,674,000 111,823,000 106,903,000 Operating Expenses

Research Development - - -

Selling General and Administrative 88,873,000 85,265,000 81,361,000

Non Recurring - - -

Others - - -

Total Operating Expenses - - -

Operating Income or Loss 27,801,000 26,558,000 25,542,000

Income from Continuing Operations

Total Other Income/Expenses Net 187,000 162,000 201,000

Earnings Before Interest And Taxes 27,988,000 26,720,000 25,743,000

Interest Expense 2,251,000 2,322,000 2,205,000

Income Before Tax 25,737,000 24,398,000 23,538,000

Income Tax Expense 7,981,000 7,944,000 7,579,000

Minority Interest (757,000) (688,000) (604,000)

Net Income From Continuing Ops 17,756,000 16,454,000 15,959,000

Non-recurring Events

Discontinued Operations - (67,000) 1,034,000

Extraordinary Items - - -

Effect Of Accounting Changes - - -

Other Items - - -

Net Income 16,999,000 15,699,000 16,389,000

Preferred Stock And Other Adjustments - - -

Net Income Applicable To Common Shares 16,999,000 15,699,000 16,389,000

Wal-Mart Stores Inc. (WMT)

Balance Sheet

View: Annual Data All numbers in thousands

Period Ending Jan 31, 2013 Jan 31, 2012 Jan 31, 2011Assets

Current Assets

Cash And Cash Equivalents 7,781,000 6,550,000 7,395,000

Short Term Investments - - -

Net Receivables 6,768,000 5,937,000 5,089,000

Inventory 43,803,000 40,714,000 36,437,000

Other Current Assets 1,588,000 1,774,000 3,091,000Total Current Assets 59,940,000 54,975,000 52,012,000

Long Term Investments - - -

Property Plant and Equipment 116,681,000 112,324,000 107,878,000

Goodwill 20,497,000 20,651,000 16,763,000

Intangible Assets - - -

Accumulated Amortization - - -

Other Assets 5,987,000 5,456,000 4,129,000

Deferred Long Term Asset Charges - - -Total Assets 203,105,000 193,406,000 180,782,000

Wal-Mart Stores Inc. (WMT)

Balance Sheet (continued)

Liabilities

Current Liabilities

Accounts Payable 59,099,000 55,952,000 52,534,000

Short/Current Long Term Debt 12,719,000 6,348,000 6,022,000

Other Current Liabilities - - 47,000Total Current Liabilities 71,818,000 62,300,000 58,603,000

Long Term Debt 41,417,000 47,079,000 43,842,000

Other Liabilities - - -

Deferred Long Term Liability Charges 7,613,000 7,862,000 6,682,000

Minority Interest 5,395,000 4,446,000 2,705,000

Negative Goodwill - - -Total Liabilities 126,243,000 121,687,000 111,832,000Stockholders' Equity

Misc Stocks Options Warrants 519,000 404,000 408,000

Redeemable Preferred Stock - - -

Preferred Stock - - -

Common Stock 332,000 342,000 352,000

Retained Earnings 72,978,000 68,691,000 63,967,000

Treasury Stock - - -

Capital Surplus 3,620,000 3,692,000 3,577,000

Other Stockholder Equity (587,000) (1,410,000) 646,000Total Stockholder Equity 76,343,000 71,315,000 68,542,000

Wal-Mart Stores Inc. (WMT)

Cash Flow

View: Annual Data All numbers in thousands

Period Ending Jan 31, 2013 Jan 31, 2012 Jan 31, 2011

Net Income 16,999,000 15,699,000 16,389,000Operating Activities, Cash Flows Provided By or Used In

Depreciation 8,501,000 8,130,000 7,641,000

Adjustments To Net Income 394,000 1,515,000 704,000

Changes In Accounts Receivables (614,000) (796,000) (733,000)

Changes In Liabilities 2,313,000 2,746,000 2,243,000

Changes In Inventories (2,759,000) (3,727,000) (3,205,000)

Changes In Other Operating Activities - - -Total Cash Flow From Operating Activities 25,591,000 24,255,000 23,643,000Investing Activities, Cash Flows Provided By or Used In

Capital Expenditures (12,898,000) (13,510,000) (12,699,000)

Investments (316,000) (3,548,000) (202,000)

Other Cash flows from Investing Activities 603,000 449,000 708,000Total Cash Flows From Investing Activities (12,611,000) (16,609,000) (12,193,000)Financing Activities, Cash Flows Provided By or Used In

Dividends Paid (5,361,000) (5,048,000) (4,437,000)

Sale Purchase of Stock (7,600,000) (6,298,000) (14,776,000)

Net Borrowings 1,487,000 3,485,000 7,819,000

Other Cash Flows from Financing Activities (498,000) (597,000) (634,000)Total Cash Flows From Financing Activities (11,972,000) (8,458,000) (12,028,000)

Effect Of Exchange Rate Changes 223,000 (33,000) 66,000Change In Cash and Cash Equivalents 1,231,000 (845,000) (512,000)

Use Wal-Mart's financial statements to compute the following ratios for the year ended January 31, 2013.

4.Current ratio

A. .83

B..97

C.65

D..50

5.Acid-test (quick) ratio

A..10

B..15

C. 20

D..25

6.Accounts receivable turnover

A.65.10 times

B.69.90 times

C.73.85 times

D.78.93 times

7.Inventory turnover

A.5.45 times

B.6.87 times

C.7.16 times

D.8.34 times

8.Profit margin

A.2.75%

B.3.63%

C.4.18%

D.5.34%

Use Wal-Mart's financial statements to compute the following ratios for the year ended January 31, 2013.

9.Asset turnover

A.2.37 times

B.1.23 times

C.3.89 times

D.4.52 times

10.Return on assets

A.8.57%

B.6.19%

C.9.75%

D.7.32%

11.Return on common stockholders' equity

A.15.79%

B.23.02%

C.18.94%

D.28.54%

12.Earnings per share (EPS) (Assume the Weighted-Average Common Shares

Outstanding is 3.14 billion.

A.$5.41

B.$4.35

C.$4.78

D.$6.23

13.Price-earnings (P-E) ratio (Assume the Market Price per Share is $74.75 and the

Earnings Per Share is $4.25)

A.10.44 times

B.12.83 times

C.14.35 times

D.17.59 times

Use Wal-Mart's financial statements to compute the following ratios for the year ended January 31, 2013.

14.Payout ratio

A.31.54%

B.25.64%

C.15.73%

D.20.85%

15.Debt to total assets ratio

A.58.45%

B.72.85%

C.62.16%

D.54.35%

16.Times interest earned

A.6.48 times

B.10.82 times

C.8.54 times

17. Future Value of $1

John and Mary Rich invested $15,000 in a savings account paying 5.25% interest at the time their son, Mike, was born. The money is to be used by Mike for his college education. On his 18th birthday, Mike withdraws the money from his savings account. How much did Mike withdraw from his account?

A. $42,755.32

B. $30,345.27

C. $35,233.89

D $37,678.11

18. Future Value of Annuity of $1

John and Char Lewis daughter, Debra, has just started high school. They decide to start a college fund for her and will invest $3,000 in a saving account at the end of each year she is in high school (4 payments total). The account will earn 6.5% interest compounded annually. How much will be in the college fund at the time Debra graduates from high school?

A. $12,345.74

B. $13,221.52

C. $14,864.39

D. $15,211.28

19. Computing a Car Payment

Assume you are financing the purchase of a used car with a four-year loan. The loan has a 6% stated annual interest rate, compounded monthly. The price of the car is $8,000. What is the monthly car payment assuming that the payments start one month after the purchase?

A. $187.88

B. $195.49

C. $203.40

D. $209.57

20. Present Value of Annuity of $1

You are evaluating financing options for a loan on a house. You decide that the maximum mortgage payment you can afford is $650 per month. The annual interest rate is 8.4%. If you get a mortgage that requires you to make monthly payments over a 30-year period, what is the maximum home loan you can afford?

A. $80,455.37

B. $82,349.58

C. $85,320.01

D. $90,346.55

21. Bonus Question!

Is a debit on the left or right?

A. Left

B. Right