Walmart Inc. Consolidated Statements of Cash Flows Fiscal Years Ended January 31, 2019 2018 $ 15,201$ 7,179 $ 10,523 10,529 Amounts in millions) Cashflows from operating activities: Consolidated net income Adjustments to reconcile consolidated net income to net cash provided by operating activities Depreciation and amortization Unrealized (gains) and losses (Gains) and losses for disposal of business operations Asda pension contribution Deferred income taxes Loss on extinguishment of debt Other operating activities Changes in certain assets and liabilities, net of effects of acquisitions: Receivables, met Inventories Accounts payable Accrued liabilities Accrued income taxes Net cash provided by operating activities 10.987 (1886) 15 (1,036) 320 10678 3516 4850 (499) (304) 3,136 1.210 1.981 1.734 (1,074) 154 (300) (274) 186 (93) 25,255 (368) (1,311) 1831 183 (40) 27,753 4,086 928 (557) 28,337 (10,703) 321 833 (56) 479 19.128) (10,344) 519 876 (14.656) (431) (24.036) (10,051) 378 1,046 (375) (9,079) (4.656) 5,492 (1,907) (53) 15872 (3.784) Cash flows from investing activities Payments for property and equipment Proceeds from the disposal of property and equipment Proceeds from the disposal of certain operations Payments for business acquisitions, net of cash acquired Other investing activities Net cash used in investing activities Cash flows from financing activities: Net change in short-term borrowings Proceeds from issuance of long-term debt Repayments of long-term debt Premiumspaid to extinguish debt Dividends paid Purchase of Company stock Dividends paid to non controlling interest Purchase of controlling interest Other financing activities Net cash used in financing activities Effect of exchange rates ce cash cash equivalents and restricted cash Net increase (decrease in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash at beginning of year Cash, cash equivalents and restricted cash at end of year 4,148 7,476 (13,061) 3,059) (6,124) 16,048) (5.717) (535) (6.100) (7,410) (431) (690) 1908) (14.299) (629) (2.537 (261) (19,875) (69) (438) 487 1,759 7,756 9,515 S 742 7,014 7.756 s (130) 7,144 7,014 Supplemental disclosure of cash flow Information: Income taxes paid Interest paid s 3.616 5 2.464 6,179 2.450 2343 FINANCIAL STATEMENTS Table of Content Index to Financial Statements 2020 2019 2018 4,368 S 3,281 $ 12 3.269 2,937 7 2,930 4,368 2.485 200 (184) 512 88 2,604 147 178 10 29 2,474 132 322 95 505 18 (1.661) (137) 2.925 1,931 10.525 140 199 7,099 18 (900) (299) 1,127 89 5,970 3 10.525 Consolidated Statements of Cash Flows (millions) Operating activities Net earnings Earnings from discontinued operations, net of tax Net earnings from continuing operations Adjustments to reconcile net earnings to cash provided by operations: Depreciation and amortization Share-based compensation expense Deferred income taxes Loss on debt extinguishment Noncash losses/ (gains) and other, net Changes in operating accounts: Inventory Other assets Accounts payable Accrued and other liabilities Cash provided by operating activities-continuing operations Cash provided by operating activities--discontinued operations Cash provided by operations Investing activities Expenditures for property and equipment Proceeds from disposal of property and equipment Other investments Cash required for investing activities Financing activities Additions to long-term debt Reductions of long-term debt Dividends paid Repurchase of stock Stock option exercises Cash required for financing activities Net increase / (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Supplemental information Interest paid, net of capitalized interest Income taxes paid Leased assets obtained in exchange for new finance lease liabilities Leased assets obtained in exchange for new operating lease liabilities 7,117 5,973 (2,649) 42 16 (2.591) (3,027) 63 20 (2,944) (3,516) 85 15 (3,416) 2.480 (2.415) (1,343) (745) 23 (2.000) 5.934 2.577 8.511 s 1,739 (2,069) (1.330) (1,565) 73 (3,152) 1,021 1,556 2,577 $ (281) (1,335) (2,124) 96 (3.644) (1,087) 2,643 1.556 $ $ 939 $ 1,031 428 262 492 $ 696 379 464 476 373 130 246 1) For each company (Walmart and Target), comment on the change in operating. investing and financing cash flows from 2018 to 2019 to 2020. Specifically, please address the following: a) Operating cash flow section-compare the net cash flows from operating activities totals ONLY-do not discuss the individual items within this section b) Investing and financing cash flow sections-compare the net investing cash flow and the net financing cash flow numbers for the three years shown. Also, discuss the items included in these sections (did they increase/decrease from year to year? How would you interpret the change in these numbers in terms of the companies ability to handle their cash?) 2) Compare Walmart's operating, investing and financing cash flows to Target's for 2020. Operating cash flow section compare the net cash flows from operating activities totals ONLY-do not discuss the individual items within this section. Investing and financing cash flow sections compare the net investing cash flow and the net Financing cash flow totals for the three years. Also compare the items included in these sections. Keep in mind that if the companies are different sizes in terms of total assets/total sales, you will need to compare percentages instead of dollar amounts. This means that for each number on the cash flow statements should be divided by either the company's total assets or total sales before you compare the companies. How do the two companies compare in terms of the companies' ability to handle their cash?) Your answers to question #1 describe how each company has performed over time in their ability to handle cash. Your answers to question #2 describe how the companies compare to each other in their ability to handle cash in 2020. 3) Based on your answers to the previous questions, which company. Walmart or Target do you think will manage their cash better in the future? Please explain your answer by Incorporating your work on questions #1 and 2. Walmart Inc. Consolidated Statements of Cash Flows Fiscal Years Ended January 31, 2019 2018 $ 15,201$ 7,179 $ 10,523 10,529 Amounts in millions) Cashflows from operating activities: Consolidated net income Adjustments to reconcile consolidated net income to net cash provided by operating activities Depreciation and amortization Unrealized (gains) and losses (Gains) and losses for disposal of business operations Asda pension contribution Deferred income taxes Loss on extinguishment of debt Other operating activities Changes in certain assets and liabilities, net of effects of acquisitions: Receivables, met Inventories Accounts payable Accrued liabilities Accrued income taxes Net cash provided by operating activities 10.987 (1886) 15 (1,036) 320 10678 3516 4850 (499) (304) 3,136 1.210 1.981 1.734 (1,074) 154 (300) (274) 186 (93) 25,255 (368) (1,311) 1831 183 (40) 27,753 4,086 928 (557) 28,337 (10,703) 321 833 (56) 479 19.128) (10,344) 519 876 (14.656) (431) (24.036) (10,051) 378 1,046 (375) (9,079) (4.656) 5,492 (1,907) (53) 15872 (3.784) Cash flows from investing activities Payments for property and equipment Proceeds from the disposal of property and equipment Proceeds from the disposal of certain operations Payments for business acquisitions, net of cash acquired Other investing activities Net cash used in investing activities Cash flows from financing activities: Net change in short-term borrowings Proceeds from issuance of long-term debt Repayments of long-term debt Premiumspaid to extinguish debt Dividends paid Purchase of Company stock Dividends paid to non controlling interest Purchase of controlling interest Other financing activities Net cash used in financing activities Effect of exchange rates ce cash cash equivalents and restricted cash Net increase (decrease in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash at beginning of year Cash, cash equivalents and restricted cash at end of year 4,148 7,476 (13,061) 3,059) (6,124) 16,048) (5.717) (535) (6.100) (7,410) (431) (690) 1908) (14.299) (629) (2.537 (261) (19,875) (69) (438) 487 1,759 7,756 9,515 S 742 7,014 7.756 s (130) 7,144 7,014 Supplemental disclosure of cash flow Information: Income taxes paid Interest paid s 3.616 5 2.464 6,179 2.450 2343 FINANCIAL STATEMENTS Table of Content Index to Financial Statements 2020 2019 2018 4,368 S 3,281 $ 12 3.269 2,937 7 2,930 4,368 2.485 200 (184) 512 88 2,604 147 178 10 29 2,474 132 322 95 505 18 (1.661) (137) 2.925 1,931 10.525 140 199 7,099 18 (900) (299) 1,127 89 5,970 3 10.525 Consolidated Statements of Cash Flows (millions) Operating activities Net earnings Earnings from discontinued operations, net of tax Net earnings from continuing operations Adjustments to reconcile net earnings to cash provided by operations: Depreciation and amortization Share-based compensation expense Deferred income taxes Loss on debt extinguishment Noncash losses/ (gains) and other, net Changes in operating accounts: Inventory Other assets Accounts payable Accrued and other liabilities Cash provided by operating activities-continuing operations Cash provided by operating activities--discontinued operations Cash provided by operations Investing activities Expenditures for property and equipment Proceeds from disposal of property and equipment Other investments Cash required for investing activities Financing activities Additions to long-term debt Reductions of long-term debt Dividends paid Repurchase of stock Stock option exercises Cash required for financing activities Net increase / (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Supplemental information Interest paid, net of capitalized interest Income taxes paid Leased assets obtained in exchange for new finance lease liabilities Leased assets obtained in exchange for new operating lease liabilities 7,117 5,973 (2,649) 42 16 (2.591) (3,027) 63 20 (2,944) (3,516) 85 15 (3,416) 2.480 (2.415) (1,343) (745) 23 (2.000) 5.934 2.577 8.511 s 1,739 (2,069) (1.330) (1,565) 73 (3,152) 1,021 1,556 2,577 $ (281) (1,335) (2,124) 96 (3.644) (1,087) 2,643 1.556 $ $ 939 $ 1,031 428 262 492 $ 696 379 464 476 373 130 246 1) For each company (Walmart and Target), comment on the change in operating. investing and financing cash flows from 2018 to 2019 to 2020. Specifically, please address the following: a) Operating cash flow section-compare the net cash flows from operating activities totals ONLY-do not discuss the individual items within this section b) Investing and financing cash flow sections-compare the net investing cash flow and the net financing cash flow numbers for the three years shown. Also, discuss the items included in these sections (did they increase/decrease from year to year? How would you interpret the change in these numbers in terms of the companies ability to handle their cash?) 2) Compare Walmart's operating, investing and financing cash flows to Target's for 2020. Operating cash flow section compare the net cash flows from operating activities totals ONLY-do not discuss the individual items within this section. Investing and financing cash flow sections compare the net investing cash flow and the net Financing cash flow totals for the three years. Also compare the items included in these sections. Keep in mind that if the companies are different sizes in terms of total assets/total sales, you will need to compare percentages instead of dollar amounts. This means that for each number on the cash flow statements should be divided by either the company's total assets or total sales before you compare the companies. How do the two companies compare in terms of the companies' ability to handle their cash?) Your answers to question #1 describe how each company has performed over time in their ability to handle cash. Your answers to question #2 describe how the companies compare to each other in their ability to handle cash in 2020. 3) Based on your answers to the previous questions, which company. Walmart or Target do you think will manage their cash better in the future? Please explain your answer by Incorporating your work on questions #1 and 2