Using the materiality Guidelines above, Calculate Materiality for Walmart for 2020 and 2019

Walmart Inc. Consolidated Balance Sheets As of January 31, 2020 2019 s (Amos in millions) ASSETS Current assets: Cash and cash equivalents Receivables, net Inventories Prepaid expenses and other Total current assets 9.465 6,284 44,435 1.622 61.806 7,722 6,283 44,269 3,623 61,897 104,317 105,208 17.424 4.417 Property and equipment, net Operating lease right-of-use assets Finance lease right-of-use assets, net Property under capital lease and financing obligations, net Goodwill Other long-term assets Total assets 7,078 31,181 31,073 16,567 236,495 14,822 219.295 575 $ LIABILITIES AND EQUITY Current liabilities: Short-term borrowings Accounts payable Accrued liabilities Accrued income taxes Long-term debt due within one year Operating Icuse obligations due within one year Finance lease obligations due within one year Capital case and financing obligations due within one year Total current liabilities 46,973 22,296 280 5,225 47,060 22.159 428 5.362 1,876 1.793 511 729 77,477 77,790 43,714 43,520 16,171 Long-term debt Long-term operating Icase obligations Long-term finance case obligations Long-term capital lease and financing obligations Deferred income taxes and other 4,307 6,683 11,981 12.961 Commitments and contingencies 284 288 3,247 83.943 Equity: Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive loss Total Walmart shareholders' equity Noncontrolling interest Total equity Total Habilities and equity (12,805) 74,669 6,883 81,552 2,965 80,785 (11,542) 72,496 7,138 79,634 S 236,495 S 219,295 See accompanying notes Walmart Inc. Consolidated Statements of Income Fiscal Yeurs Ended January 31, 2020 2019 2018 $ $ 495,761 519.926 4,038 523.964 510,329 4,076 514,405 4,582 500 343 394,605 108,791 385,301 107,147 373,396 106,510 20,437 20,568 21,957 (Amoumts in millions, except per share data) Revenues: Net sales Membership and other income Total revenues Costs and expenses Cost of sales Operating, selling general and administrative expenses Operating income Interest: Debt Finance, capital lease and financing obligations Interest income Interest, net Loss on extinguishment of debt Other (gains) and losses Income before income taxes Provision for income taxes Consolidated net income Consolidated net income attributable to non controlling interest Consolidated net income attributable tu Walmart 2,262 1,975 1.978 337 371 352 (189) (217) (152) 2.410 2,129 2,178 3,136 8.368 (1.958) 20.116 4.915 11,460 15,123 4,600 4,281 15,201 (320) 14,881 7,179 (509) 6,670 10,523 (661) 9.862 S $ S Net income per common share: Basic net income per common share attributable to Walmart Diluted net income per common share attributable to Walmart S 2.28 $ 3.29 5.22 5.19 2.26 3.28 Weighted average common shares outstanding Basic Diluted 2,850 2,929 2.995 2.868 2.945 3,010 Dividends declared per common share $ 2.12 $ 2.08 $ 2.04 See accompanying notes Illustrative Case Materiality Guidelines One of the Big 4 CPA firms has developed the following table to assist its audit staff in determining planning material- ity based on the greater of total assets or total sales. If the Greater of Total Assets or Total Revenues is: Over But Not Over 50 $ 30,000 30,000 100,000 100,000 300,000 300,000 1,000,000 1,000,000 3,000,000 3,000,000 10,000,000 10,000,000 30,000,000 30,000,000 100,000,000 100,000,000 300,000,000 300,000,000 1,000,000,000 1,000,000,000 3,000,000,000 3,000,000,000 10,000,000,000 10,000,000,000 30,000,000,000 30,000,000,000 100,000,000,000 100,000,000,000 300,000,000,000 300,000,000,000 Materiality is: Times The Excess Over 0 + .05900 $0 1,780 +.03100 30,000 3.970+.02140 100,000 8,300 + .01450 300,000 18,400 +01000 1,000,000 38,300.00670 3,000,000 85,500 +.00460 10,000,000 178,000 +.00313 30,000,000 397,000 + .00214 100,000,000 826,000+.00145 300,000,000 1,840,000+.00100 1,000,000,000 3,830,000+.00067 3,000,000,000 8,550,000+.00046 10,000,000,000 17,800,000+.00031 30,000,000,000 39,700,000+.00021 100,000,000,000 82,600,000+.00015 300,000,000,000 To illustrate application of the table, assume that a company has $12,670,000 of total assets and $20,520,000 of total revenue. Planning materiality would be calculated as described below. $85,500 +00460 ($20,520,000 - $10,000,000 - $133,892