• Walmart Inc. recorded significant inventory write-downs during the year, impacting its financial statements. The company provided the following details:
  • Inventory Write-down: $500 million
  • Total Revenue: $550 billion
  • Operating Income: $25 billion
  • Total Assets: $400 billion
  • Total Liabilities: $200 billion

• Requirements:
  1. Calculate Walmart's operating income after the inventory write-down.
  2. Prepare a balance sheet reflecting the adjusted inventory and total assets.
  3. Analyze the impact of inventory write-downs on Walmart's gross profit margin.
  4. Discuss the disclosure requirements for inventory write-downs in Walmart's financial statements.
  5. Evaluate Walmart's inventory turnover ratio and its implications for liquidity management.