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Wal-Mart: GAAP Balance sheet vs. Economic Balance Sheet

FOR WAL-MART, INC. (NYSE: WMT)

1. Using the GAAP balance sheet, for each item, determine where it should be classified in the economic balance sheet (i.e., core operations, non-operating net assets, debt claims, other capital claims, or equity claims). Create a two-column table in Word to show the corresponding accounts.

2. Determine whether any other items should appear on the economic balance sheet that is not on the GAAP balance sheet.

3. Determine if information exists in the annual report or elsewhere that can assist in valuing the non-operating net assets, debt, and other capital claims.

Solution Preview

Question 1
GAAP Balance Sheet Economic Balance Sheet
Cash and cash equivalents Core operations
Receivables Core operations
Inventories Core operations
Prepaid expenses and other Core operations
Current assets of discontinued operations Non-operating assets
Land Core operations
Buildings and improvements Core operations
Fixtures and equipment Core operations
Transportation equipment Core operations
Property and equipment, net Core ...

Solution Summary

The solution examines GAAP balance sheet versus economic balance sheets for Walmart, Inc.

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