4. Use horizontal analysis to compare each the given year on the balance sheet. Quantify both the changes of a few assets, liabilities and equity categories (i.e. current assets, long term liabilities, etc.) along with the change in the ratios you have chosen. Dont compare different companies to each other at this point.

   1. What were the changes since the last year?

   2. Which companies improved and which worsened?

   3. Use your understanding of financial ratios to explain how you know if a company

      improved or worsened.

CONDENSED CONSOLIDATED BALANCE SHEET MCDONALDS (unaudited) September 30, 2020 December 31, 2019 S S 3,683.8 2,391.8 44.2 898.5 2,224.2 50.2 385.0 616.3 6,736,1 3,557.9 1,283.3 2,715,8 2.469.6 1,270.3 2,677.4 2,584.0 6,531.7 13,261.2 6,468.7 13,276.2 40,088.6 (15,870.3) 24,218.3 50,699.3 39,050.9 (14,890.9) 24,160.0 47,510.8 S S In millions, except per share data Assets Current assets Cash and cquivalents Accounts and notes receivable Inventories, at cost, not in excess of market Prepaid expenses and other current assets Total current assets Other assets Investments in and advances to affiliates Goodwill Miscellaneous Total other assets Lease right-of-use asset, net Property and equipment Property and equipment, at cost Accumulated depreciation and amortization Net property and equipment Total assets Liabilities and shareholders' equity Current liabilities Accounts payable Lease liability Income taxes Other taxes Accrued interest Accrued payroll and other liabilities Current maturities of long-term debt Total current liabilities Long-term debt Long-term lease liability Long-term income taxes Deferred revenues - initial franchise fees Other long-term liabilities Deferred income taxes Shareholders' equity (deficit) Preferred stock, no par value; authorized - 165.0 million shares; issued - none Common stock, S.01 par value; authorized - 3.5 billion shares; issued - 1,660.6 million shares Additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) Common stock in treasury, at cost; 915.5 and 914.3 million shares Total shareholders' equity (deficit) Total liabilities and shareholders' equity (deficit) 689.0 718.2 364.0 256.6 340.2 1,223.4 2,688.8 6,280.2 35,143.4 12,736.0 1,957.3 679.8 951.5 1,423.2 988.2 621.0 331.7 247.5 337.8 1,035.7 59.1 3,621.0 34,118.1 12,757.8 2,265.9 660.6 979.6 1,318.1 16.6 7,854.7 53,492.5 (2,758.8) (67,077.1) (8,472.1) 50,699.3 16.6 7,653.9 52,930.5 (2,482.7) (66,328.6) (8,210.3) 47,510.8 S S See Notes to condensed consolidated financial statements. WALMART INC., 10-Q filed on 12/2/2020 Quarterly Report Cover Financial Statements Notes to Financial Statements Accounting Policies Notes Tab Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions Oct. 31, 2020 Jan. 31, 2020 Oct. 31, 2019 $ 9,465 6,284 44,435 1,622 $ 14,325 5,770 51,842 1,665 73,602 102,232 17,128 4.929 30,236 22,736 250,863 61,806 105,208 17,424 4,417 31,073 16,567 236,495 $ 8,606 5,612 51,546 2,148 67,912 104,326 16,944 4,155 30,716 15,777 239,830 575 46,973 0 22,296 280 Current assets: Cash and cash equivalents Receivables, net Inventories Prepaid expenses and other Total current assets Property and equipment, net Operating lease right-of-use assets Finance lease right-of-use assets, net Goodwill Other long-term assets Total assets Current liabilities: Short-term borrowings Accounts payable Dividends payable Accrued liabilities Accrued income taxes Long-term debt due within one year Operating lease obligations due within one year Finance lease obligations due within one year Total current liabilities Long-term debt Long-term operating lease obligations Long-term finance lease obligations Deferred income taxes and other Commitments and contingencies Equity: Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive loss Total Walmart shareholders' equity Noncontrolling interest Total equity Total liabilities and equity 240 54,152 1,529 24,995 548 4,358 1,725 574 88,121 40,849 15,982 4,750 13,657 5,362 1,793 511 77,790 43,714 16,171 4,307 12,961 4,926 49,750 1,507 20,973 327 4,093 1,740 468 83,784 44,912 15,741 4,068 13,018 283 3,485 92,279 (14,616) 81,431 6,073 87,504 $ 250,863 284 3,247 83,943 (12,805) 74,669 6,883 81,552 $ 236,495 284 3,091 80,656 (12,382) 71,649 6,658 78,307 $ 239,830 NIKE, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS AUGUST 31, 2020 MAY 31, 2020 $ 8,148 $ 1,332 3,813 6,705 1,939 21,937 4,969 3,158 272 223 2,699 33,258 $ 8,348 439 2,749 7,367 1,653 20,556 4,866 3,097 274 223 2,326 31,342 $ $ (In millions) ASSETS Current assets: Cash and equivalents Short-term investments Accounts receivable, net Inventories Prepaid expenses and other current assets Total current assets Property, plant and equipment, net Operating lease right-of-use assets, net Identifiable intangible assets, net Goodwill Deferred income taxes and other assets TOTAL ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt Notes payable Accounts payable Current portion of operating lease liabilities Accrued liabilities Income taxes payable Total current liabilities Long-term debt Operating lease liabilities Deferred income taxes and other liabilities Redeemable preferred stock Shareholders' equity: Common stock at stated value: Class A convertible - 315 and 315 shares outstanding Class B - 1,250 and 1,243 shares outstanding Capital in excess of stated value Accumulated other comprehensive income (loss) Retained earnings (deficit) Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 1 $ 137 1,983 459 5,742 297 8,619 9,408 2,961 3,046 3 248 2,248 445 5,184 156 8,284 9,406 2,913 2,684 3 8,695 (401) 927 9,224 33,258 $ 3 8,299 (56) (191) 8,055 31,342 $ The accompanying Notes to the Unaudited Condensed Consolidated Financial Statements are an integral part of this statement. 3 CONDENSED CONSOLIDATED BALANCE SHEET MCDONALDS (unaudited) September 30, 2020 December 31, 2019 S S 3,683.8 2,391.8 44.2 898.5 2,224.2 50.2 385.0 616.3 6,736,1 3,557.9 1,283.3 2,715,8 2.469.6 1,270.3 2,677.4 2,584.0 6,531.7 13,261.2 6,468.7 13,276.2 40,088.6 (15,870.3) 24,218.3 50,699.3 39,050.9 (14,890.9) 24,160.0 47,510.8 S S In millions, except per share data Assets Current assets Cash and cquivalents Accounts and notes receivable Inventories, at cost, not in excess of market Prepaid expenses and other current assets Total current assets Other assets Investments in and advances to affiliates Goodwill Miscellaneous Total other assets Lease right-of-use asset, net Property and equipment Property and equipment, at cost Accumulated depreciation and amortization Net property and equipment Total assets Liabilities and shareholders' equity Current liabilities Accounts payable Lease liability Income taxes Other taxes Accrued interest Accrued payroll and other liabilities Current maturities of long-term debt Total current liabilities Long-term debt Long-term lease liability Long-term income taxes Deferred revenues - initial franchise fees Other long-term liabilities Deferred income taxes Shareholders' equity (deficit) Preferred stock, no par value; authorized - 165.0 million shares; issued - none Common stock, S.01 par value; authorized - 3.5 billion shares; issued - 1,660.6 million shares Additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) Common stock in treasury, at cost; 915.5 and 914.3 million shares Total shareholders' equity (deficit) Total liabilities and shareholders' equity (deficit) 689.0 718.2 364.0 256.6 340.2 1,223.4 2,688.8 6,280.2 35,143.4 12,736.0 1,957.3 679.8 951.5 1,423.2 988.2 621.0 331.7 247.5 337.8 1,035.7 59.1 3,621.0 34,118.1 12,757.8 2,265.9 660.6 979.6 1,318.1 16.6 7,854.7 53,492.5 (2,758.8) (67,077.1) (8,472.1) 50,699.3 16.6 7,653.9 52,930.5 (2,482.7) (66,328.6) (8,210.3) 47,510.8 S S See Notes to condensed consolidated financial statements. WALMART INC., 10-Q filed on 12/2/2020 Quarterly Report Cover Financial Statements Notes to Financial Statements Accounting Policies Notes Tab Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions Oct. 31, 2020 Jan. 31, 2020 Oct. 31, 2019 $ 9,465 6,284 44,435 1,622 $ 14,325 5,770 51,842 1,665 73,602 102,232 17,128 4.929 30,236 22,736 250,863 61,806 105,208 17,424 4,417 31,073 16,567 236,495 $ 8,606 5,612 51,546 2,148 67,912 104,326 16,944 4,155 30,716 15,777 239,830 575 46,973 0 22,296 280 Current assets: Cash and cash equivalents Receivables, net Inventories Prepaid expenses and other Total current assets Property and equipment, net Operating lease right-of-use assets Finance lease right-of-use assets, net Goodwill Other long-term assets Total assets Current liabilities: Short-term borrowings Accounts payable Dividends payable Accrued liabilities Accrued income taxes Long-term debt due within one year Operating lease obligations due within one year Finance lease obligations due within one year Total current liabilities Long-term debt Long-term operating lease obligations Long-term finance lease obligations Deferred income taxes and other Commitments and contingencies Equity: Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive loss Total Walmart shareholders' equity Noncontrolling interest Total equity Total liabilities and equity 240 54,152 1,529 24,995 548 4,358 1,725 574 88,121 40,849 15,982 4,750 13,657 5,362 1,793 511 77,790 43,714 16,171 4,307 12,961 4,926 49,750 1,507 20,973 327 4,093 1,740 468 83,784 44,912 15,741 4,068 13,018 283 3,485 92,279 (14,616) 81,431 6,073 87,504 $ 250,863 284 3,247 83,943 (12,805) 74,669 6,883 81,552 $ 236,495 284 3,091 80,656 (12,382) 71,649 6,658 78,307 $ 239,830 NIKE, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS AUGUST 31, 2020 MAY 31, 2020 $ 8,148 $ 1,332 3,813 6,705 1,939 21,937 4,969 3,158 272 223 2,699 33,258 $ 8,348 439 2,749 7,367 1,653 20,556 4,866 3,097 274 223 2,326 31,342 $ $ (In millions) ASSETS Current assets: Cash and equivalents Short-term investments Accounts receivable, net Inventories Prepaid expenses and other current assets Total current assets Property, plant and equipment, net Operating lease right-of-use assets, net Identifiable intangible assets, net Goodwill Deferred income taxes and other assets TOTAL ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt Notes payable Accounts payable Current portion of operating lease liabilities Accrued liabilities Income taxes payable Total current liabilities Long-term debt Operating lease liabilities Deferred income taxes and other liabilities Redeemable preferred stock Shareholders' equity: Common stock at stated value: Class A convertible - 315 and 315 shares outstanding Class B - 1,250 and 1,243 shares outstanding Capital in excess of stated value Accumulated other comprehensive income (loss) Retained earnings (deficit) Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 1 $ 137 1,983 459 5,742 297 8,619 9,408 2,961 3,046 3 248 2,248 445 5,184 156 8,284 9,406 2,913 2,684 3 8,695 (401) 927 9,224 33,258 $ 3 8,299 (56) (191) 8,055 31,342 $ The accompanying Notes to the Unaudited Condensed Consolidated Financial Statements are an integral part of this statement. 3