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

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    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.

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    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.