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 | $ | 6,916 |
| $ | 7,027 |
Accounts receivable |
| 5,774 |
|
| 5,995 |
Inventories |
| 43,943 |
|
| 43,206 |
Other current assets |
| 3,671 |
|
| 2,101 |
Total current assets | $ | 60,304 |
| $ | 58,329 |
Fixed assets: |
|
|
|
|
|
Net fixed assets | $ | 114,978 |
| $ | 114,338 |
Other long-term assets |
| 30,200 |
|
| 27,118 |
Total assets | $ | 205,482 |
| $ | 199,785 |
Liabilities and Shareholders' Equity |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable | $ | 46,252 |
| $ | 41,593 |
Other current liabilities |
| 32,589 |
|
| 25,655 |
Total current liabilities | $ | 78,841 |
| $ | 67,248 |
Long-term debt |
| 36,985 |
|
| 42,178 |
Other long-term liabilities |
| 11,467 |
|
| 12,241 |
Total liabilities | $ | 127,293 |
| $ | 121,667 |
Total shareholders' equity |
| 78,189 |
|
| 78,118 |
Total liabilities and shareholders equity | $ | 205,482 |
| $ | 199,785 |
|
|
|
|
|
|
Income Statement (figures in $ millions) | |||||
Net sales | $ | 500,503 |
| $ | 486,033 |
Cost of goods sold |
| 373,556 |
|
| 361,416 |
Selling, general, and administrative expenses |
| 96,141 |
|
| 91,933 |
Depreciation |
| 10,689 |
|
| 10,240 |
Earnings before interest and taxes (EBIT) | $ | 20,117 |
| $ | 22,444 |
Interest expense |
| 2,338 |
|
| 2,427 |
Taxable income | $ | 17,779 |
| $ | 20,017 |
Tax |
| 4,600 |
|
| 7,006 |
Net income | $ | 13,179 |
| $ | 13,011 |
Dividends |
| 6,284 |
|
| 6,855 |
Addition to retained earnings | $ | 6,895 |
| $ | 6,156 |
|
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.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started