Question
The following table gives abbreviated balance sheets and income statements for Walmart. Balance Sheet (figures in $ millions) End of Year Start of Year Assets
The following table gives abbreviated balance sheets and income statements for Walmart.
Balance Sheet (figures in $ millions) | |||||
End of Year | Start of Year | ||||
Assets | |||||
Current assets: | |||||
Cash and marketable securities | $ | 6,846 | $ | 6,957 | |
Accounts receivable | 5,704 | 5,925 | |||
Inventories | 43,873 | 43,136 | |||
Other current assets | 3,601 | 2,031 | |||
Total current assets | $ | 60,024 | $ | 58,049 | |
Fixed assets: | |||||
Net fixed assets | $ | 114,908 | $ | 114,268 | |
Other long-term assets | 30,130 | 27,048 | |||
Total assets | $ | 205,062 | $ | 199,365 | |
Liabilities and Shareholders' Equity | |||||
Current liabilities: | |||||
Accounts payable | $ | 46,182 | $ | 41,523 | |
Other current liabilities | 32,519 | 25,585 | |||
Total current liabilities | $ | 78,701 | $ | 67,108 | |
Long-term debt | 36,915 | 42,108 | |||
Other long-term liabilities | 11,397 | 12,171 | |||
Total liabilities | $ | 127,013 | $ | 121,387 | |
Total shareholders' equity | 78,049 | 77,978 | |||
Total liabilities and shareholders equity | $ | 205,062 | $ | 199,365 | |
Income Statement (figures in $ millions) | |||||
Net sales | $ | 500,433 | $ | 485,963 | |
Cost of goods sold | 373,486 | 361,346 | |||
Selling, general, and administrative expenses | 96,071 | 91,863 | |||
Depreciation | 10,619 | 10,170 | |||
Earnings before interest and taxes (EBIT) | $ | 20,257 | $ | 22,584 | |
Interest expense | 2,268 | 2,357 | |||
Taxable income | $ | 17,989 | $ | 20,227 | |
Tax | 4,600 | 7,079 | |||
Net income | $ | 13,389 | $ | 13,148 | |
Dividends | 6,214 | 6,785 | |||
Addition to retained earnings | $ | 7,175 | $ | 6,363 | |
Assume a tax rate of 35%. Calculate the following using balance-sheet figures from the start of the year and Income statement figures from the end of the year:
a. Calculate the return on assets. (Enter your answer as a percent rounded to 2 decimal places.)
b. Calculate the operating profit margin. (Enter your answer as a percent rounded to 2 decimal places.)
c. Calculate the sales-to-assets ratio. (Round your answer to 2 decimal places.)
d. Calculate the inventory turnover. (Round your answer to 2 decimal places.)
e. Calculate the debt-equity ratio. (Round your answer to 4 decimal places.)
f. Calculate the current ratio. (Round your answer to 3 decimal places.)
g. Calculate the quick ratio. (Round your answer to 4 decimal places.)
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