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ABC/123 Version X
Financial Statement Review If that number was negative without a very good reason, that would be a bad sign.
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
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…
Works Cited
http://finance.yahoo.com/q/ks?s=WMT+Key+Statistics
http://stock.walmart.com/annual-reports http://finance.yahoo.com/q/bs?s=WMT+Balance+Sheet&annual http://finance.yahoo.com/q/cf?s=WMT
http://finance.yahoo.com/q/is?s=wmt+Income+Statement&annual
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This is the result of the decline in inventory levels. If the inventory levels had not changed, there would have been no difference between the net profit for the two methods. If the company sold another 10,000 units, it would have a higher profit. This calculation was based on the contribution margin method. What occurs in this method is that the company sells more, but it does not produce more.
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