ABC/123 Version X Financial Statement Review Acc/561

ABC/123 Version X Financial Statement Review ACC/561 Version Wal-Mart's Financial Statement Review by Ellen Talley What is the net income for the current fiscal year? Is it up or down from the prior year? Why would this information be important to investors? What is the ending balance in stockholders' equity? Why would a labor union potentially be interested in this information? What is the total value of assets? Why would this information be important to a potential creditor? What is the total cash flow from operation? What financial statement user would find this information most important? WalMart's Income Statement WalMart's Stockholder Equity WalMart's Statement of Cash Flows WalMart's Full Balance Sheet Works Cited What is the net income for the current fiscal year? The net income per for the current fiscal year per Yahoo Finance is 16.999 billion after taxes and interest and such.

This is on a net sales of 466 billion and total revenue of 469 billion. The other 3+ billion is from membership fees for Wal-Mart programs and offerings for their consumers. http://finance.yahoo.com/q/ks?s=WMT+Key+Statistics http://stock.walmart.com/annual-reports Is it up or down from the prior year? It is up, althought only very slightly. The year over year earnings growth was 1.10%.

This is slightly more than the raw revenue year-over-year so they are earning more net profit for each dollar or revenue but only by a very, very slight margin. http://finance.yahoo.com/q/ks?s=WMT+Key+Statistics http://stock.walmart.com/annual-reports Why would this information be important to investors? The net income per year would be important because it shows what is left after all of the money used for operating, advertising and salary costs is all covered.

If that number was negative without a very good reason, that would be a bad sign. The year amounts are even more important because they show trends. The gross and net profit as compared to revenue should increase in proportion rather than decrease. For example, a net profit of one year that is 1.5% and a net profit next year that is 1% would be a bad sign. Going in the other direction is generally a good sign. Wal-Mart is on the good end, but barely.

http://finance.yahoo.com/q/ks?s=WMT+Key+Statistics http://stock.walmart.com/annual-reports What is the ending balance in stockholders' equity? Per the Balance Sheet for FY 2013 (ending January 2013), the total shareholder equity is $76 billion. This was up from 71 billion the year prior and 68 billion the year before that. Total equity of all types was 81.738 billion for FY 2013 which is up from 75.7 billion in the prior year. One major thing that improved this metric was a drop in long-term debt from 44 billion to 38 billion the prior year.

The drop in long-term debt matches the rise in equity. http://finance.yahoo.com/q/ks?s=WMT+Key+Statistics http://stock.walmart.com/annual-reports Why would a labor union potentially be interested in this information? A labor union would want to know this because they want to have a record of what money is being given to investors and what instead could be spent on better employees wages and benefits. What is the total value of assets? Net tangible assest is 55.8 billion while total raw assets is 203 billion.

Of that amount, 59 billion are current assets such as cash, net receivables, inventory and prepaid expenses like insurance and such. Wal-Mart has 113 billion in property and equipment after about 51 billion in depreciation is accounted for. http://finance.yahoo.com/q/bs?s=WMT+Balance+Sheet&annual http://stock.walmart.com/annual-reports Why would this information be important to a potential creditor? Total assets would be important for a few reasons. First, it would show the value of all cash and other items that the firm has on hand.

This number could be compared to what is owed or what could be loaned to the firm. This gives a lender a firmer picture as to the firm's ability to repay any new debt or current debts. http://finance.yahoo.com/q/bs?s=WMT+Balance+Sheet&annual http://stock.walmart.com/annual-reports What is the total cash flow from operation? Per the FY 2013 cash flow statement, total cash flow from operations is 25.591 billion. This was up from 24.2 billion in FY 2012 and 23.6 billion in FY 2011.

http://finance.yahoo.com/q/cf?s=WMT+Cash+Flow&annual http://stock.walmart.com/annual-reports What financial statement user would find this information most important? A lot of people would find this relevant. Investors with Wal-Mart would want to know the current amount and the trend with cash flow. Creditors want to know about cash flow because that would speak to ability to pay one's bills including ongoing operations and ability to pay debt.

WalMart's Income Statement Figure 1 - http://finance.yahoo.com/q/is?s=wmt+Income+Statement&annual WalMart's Stockholder Equity Figure 2 - http://finance.yahoo.com/q/bs?s=wmt+Balance+Sheet&annual WalMart's Statement.