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Walmart Inc. has the following data for its U.S. operations for the year ended January 31, 2024: Income Statement Sales revenue: $400,000,000 Cost of goods
Walmart Inc. has the following data for its U.S. operations for the year ended January 31, 2024:
Income Statement
- Sales revenue: $400,000,000
- Cost of goods sold: $300,000,000
- Gross margin: $100,000,000
- Operating expenses:
- Selling expenses: $20,000,000
- Administrative expenses: $15,000,000
- Operating income: $65,000,000
- Nonoperating items:
- Interest expense: $5,000,000
- Gain on sale of investments: $2,000,000
- Net income: $62,000,000
Balance Sheet
- Assets:
- Cash: $15,000,000
- Accounts receivable: $10,000,000
- Inventory: $50,000,000
- Property, plant, and equipment: $100,000,000
- Total assets: $175,000,000
- Liabilities:
- Accounts payable: $10,000,000
- Short-term loans: $15,000,000
- Long-term debt: $50,000,000
- Stockholders' equity: $100,000,000
- Total liabilities and stockholders' equity: $175,000,000
Requirements:
- Calculate the gross profit margin.
- Determine the operating profit margin.
- Compute the return on assets (ROA).
- Calculate the debt-to-equity ratio.
- Find the quick ratio.
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