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: WAL-MART STORES, INC. Consolidated Balance Sheets ($ in millions except per share data) As of January 31, 2017 2016 Book $ 6,867 $ 8, 705 5,8355 .624 43,046 44,469 1,941 1,441 57,689 60,239 erences 179, 492 (71,782) 107,710 176,958 (66,787) 110,171 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 (net) Property under capital leases: Property under capital lease and financing obligations Less accumulated amortization Property under capital leases and financing obligations (net) Goodwill Other assets and deferred 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 nurrent liabilities 11,637 (5,169) 6,468 17,037 9,921 $198,825 11,096 (4,751) 6,345 16, 695 6.131 $199,581 $ 1,099 41,433 20,654 921 2,256 565- 66.92 2, 708 38,487 19,607 521 2,745 551 64.619 Case - Vallilall 1 $198,825 $199,581 $ 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 Long-term capital lease and financing obligations Deferred income taxes and other Commitments and contingencies Equity: Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive income (loss) Total Walmart shareholders' equity Nonredeemable noncontrolling interest Total equity Total liabilities, redeemable noncontrolling interest and equity 1,099 41,433 20,654 921 2, 256 565 66,928 36,015 6,003 9,344 2,708 38, 487 19,607 521 2,745 551 64,619 38,214 5,816 7,321 305 2, 371 89,354 $ (14,232) 77,798 2,737 80,535 $198,825 317 1,805 90,021 (11,597) 80,546 3,065 83,611 199,581 Source: Wal-Mart NOTES TO CONSOLIDATED FINANCIAL STATEMENTS WAL-MART STORES, INC. 1 Summary of Significant Accounting Policies (in part) Cash and Cash Favivalents 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 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 substantially all of 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, 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 shopping 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 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: Wal-Mart Required: 1. Does Walmart separately report current assets versus long-term assets, and current liabilities versus long-term liabilities? 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 U.S. Inventory? 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 million million million 1. Does Walmart report these separately? 2. million million a. Total assets b. Current assets C. Current liabilities d. Total equity e. Retained earnings Inventory million million million 3. What is Walmart's largest current asset? What is its largest current liability? 4. Current ratio 5. a. Does the company have any securities classified as cash equivalents? b. Cost method used for U.S. inventory C. Walmart recognizes revenue at the time