The case presents a statement of cash flows for Walmart for fiscal 2015, 2014, and 2013. This statement matches the Walmart statement of cash flows in Appendix A and is an expanded version of the statement of cash flows for Walmart shown in chapter 1.

REQUIRED

1. Explain why depreciation and amortization appear as an addition when net income is converted to cash flow from operations.
2. For 2016, Walmart shows an adjustment for inventories of negative $703 million. However, on the balance sheet, inventories declined from $45,141 million to $44,469 million, a difference of $672 million. Explain the $703 million adjustments and offer examples of why the adjustment differs from the change in the inventory balance.
3. Estimate the amount of cash received from customers during 2016.
4. Discuss the relation between net income and cash flow from operations for each of the three years.
5. Discuss the relations among cash flows from operating, investing, and financing activities for each of the three years.