Walmart Income Statement For the year ended January 31, 2018			Walmart Income Statement For the year ended January 31, 2017
Details	2018		Details	2017
	$			$
Total Revenue	$500,343,000		Total Revenue	$485,873,000
Cost of Revenue	$373,396,000		Cost of Revenue	$361,256,000
Gross Profit	$126,947,000		Gross Profit	$124,617,000
Sales, General and Admin.	$106,510,000		Sales, General and Admin.	$101,853,000
Operating Income	$20,437,000		Operating Income	$22,764,000
Addl income/expense items	($2,984,000)		Addl income/expense items	$100,000
Earnings Before Interest and Tax	$17,453,000		Earnings Before Interest and Tax	$22,864,000
Interest Expense	$2,330,000		Interest Expense	$2,367,000
Earnings Before Tax	$15,123,000		Earnings Before Tax	$20,497,000
Income Tax	$4,600,000		Income Tax	$6,204,000
Minority Interest	($661,000)		Minority Interest	($650,000)
Net Income-Cont. Operations	$9,862,000		Net Income-Cont. Operations	$13,643,000
Net Income-	$9,862,000		Net Income-	$13,643,000
Net Income-Applicable to Common Shareholders	$9,862,000		Net Income-Applicable to Common Shareholders	$13,643,000

Target Income Statement For the year ended February 23, 2018			Target Income Statement For the year ended January 28, 2017
Details	2018		Details	2017
	$			$
Total Revenue	$71,879,000		Total Revenue	$69,495,000
Cost of Revenue	$51,125,000		Cost of Revenue	$49,145,000
Gross Profit	$20,754,000		Gross Profit	$20,350,000
Sales, General and Admin.	$14,248,000		Sales, General and Admin.	$13,356,000
Other Operating Items	$2,194,000		Other Operating Items	$2,025,000
Operating Income	$4,312,000		Operating Income	$4,969,000
Addl income/expense items	0		Addl income/expense items	0
Earnings Before Interest and Tax	$4,312,000		Earnings Before Interest and Tax	$4,969,000
Interest Expense	$666,000		Interest Expense	$1,004,000
Earnings Before Tax	$3,646,000		Earnings Before Tax	$3,965,000
Income Tax	$718,000		Income Tax	$1,296,000
Minority Interest	0		Minority Interest	0
Net Income-Cont. Operations	$2,928,000		Net Income-Cont. Operations	$2,669,000
Net Income	$2,934,000		Net Income	$2,737,000
Net Income-Applicable to Common Shareholders	$2,934,000		Net Income-	$2,737,000

Target Balance Sheet For the year ended February 3, 2018			Target Balance Sheet For the year ended January 28, 2017		Target Balance Sheet For the year ended January 30, 2016
Details	2018		Details	2017	Details	2016
	$			$		$
Cash and Cash Equivalents	$2,643,000		Cash and Cash Equivalents	$2,512,000	Cash and Cash Equivalents	$4,046,000
Short-Term Investments	0		Short-Term Investments	0	Short-Term Investments	0
Net Receivables	0		Net Receivables	0	Net Receivables	0
Inventory	$8,657,000		Inventory	$8,309,000	Inventory	$8,601,000
Other Current Assets	$1,264,000		Other Current Assets	$1,169,000	Other Current Assets	$1,483,000
Total Current Assets	$12,564,000		Total Current Assets	$11,990,000	Total Current Assets	$14,130,000
Long-Term Investments	0		Long-Term Investments	0	Long-Term Investments	0
Fixed Assets	$25,018,000		Fixed Assets	$24,658,000	Fixed Assets	$25,217,000
Goodwill	0		Goodwill	0	Goodwill	0
Intangible Assets	0		Intangible Assets	0	Intangible Assets	0
Other Assets	$1,417,000		Other Assets	$783,000	Other Assets	$915,000
Deferred Asset Charges	0		Deferred Asset Charges	0	Deferred Asset Charges	0
Total Assets	$38,999,000		Total Assets	$37,431,000	Total Assets	$40,262,000
Current Liabilities			Current Liabilities		Current Liabilities
Accounts Payable	$12,931,000		Accounts Payable	$10,989,000	Accounts Payable	$11,654,000
Short-Term Debt / Current Portion of Long-Term Debt	$270,000		Short-Term Debt / Current Portion of Long-Term Debt	$1,718,000	Short-Term Debt / Current Portion of Long-Term Debt	$815,000
Other Current Liabilities	0		Other Current Liabilities	0	Other Current Liabilities	$153,000
Total Current Liabilities	$13,201,000		Total Current Liabilities	$12,707,000	Total Current Liabilities	$12,622,000
Long-Term Debt	$11,317,000		Long-Term Debt	$11,031,000	Long-Term Debt	$11,945,000
Other Liabilities	$2,059,000		Other Liabilities	$1,879,000	Other liabilities	$1,915,000
Deferred Liability Charges	$713,000		Deferred Liability Charges	$861,000	Deferred Liability Charges	$823,000
Minority Interest	0		Minority Interest	0	Minority Interest	0
Total Liabilities	$27,290,000		Total Liabilities	$26,478,000	Total Liabilities	$27,305,000
Stock Holders Equity			Stock Holders Equity		Stock Holders Equity
Common Stocks	$45,000		Common Stocks	$46,000	Common Stocks	$50,000
Capital Surplus	$5,858,000		Capital Surplus	$5,661,000	Capital Surplus	$5,348,000
Retained Earnings	$6,553,000		Retained Earnings	$5,884,000	Retained Earnings	$8,188,000
Other Equity	($747,000)		Other Equity	($638,000)	Other Equity	($629,000)
Total Equity	$11,709,000		Total Equity	$10,953,000	Total Equity	$12,957,000
Total Liabilities & Equity	$38,999,000		Total Liabilities & Equity	$37,431,000	Total Liabilities & Equity	$40,262,000

1. Inventory- Compute inventory turnover and average inventory days for only the two most recent years.

What is inventory for the company? Does the company manufacture inventory? What portion of total inventory is raw materials? Work in process? Finished goods?

Compare the two companies inventory cost method. Adjust LIFO inventory and cost of goods sold if necessary. Is the LIFO reserve significant?

What is the relative size of inventory? How has this changed over the last two years?

Compute inventory turnover and average inventory days for two years reported on the income statement.

Compute gross margin in percentage terms. Can we explain any changes in gross profit levels? Have costs for raw material and labor increased during the year? Have sales volume softened? What has happened to the unit price? Read the MD&A to determine senior managements take.

Does the company face any inventory related risk? What has been done to mitigate this risk? Read MD&A