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Walmart Inc., a multinational retail corporation, presented the following data: Sales Revenue: $4,000,000,000 Variable Costs: $2,500,000,000 Fixed Costs: $1,000,000,000 Interest Expense: $200,000,000 Depreciation: $250,000,000 Tax
- Walmart Inc., a multinational retail corporation, presented the following data:
- Sales Revenue: $4,000,000,000
- Variable Costs: $2,500,000,000
- Fixed Costs: $1,000,000,000
- Interest Expense: $200,000,000
- Depreciation: $250,000,000
- Tax Rate: 28%
- Total Assets: $3,500,000,000
- Total Liabilities: $2,500,000,000
- Shareholders' Equity: $1,000,000,000
Requirements:
- Prepare an Income Statement for Walmart.
- Calculate the Contribution Margin.
- Determine the Break-Even Point in units (assume the average sales price per unit is $20).
- Calculate the Debt-to-Equity Ratio and Interest Coverage Ratio.
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