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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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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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See the attahced file. I have compiled a very comprehensive excel workbook. I am seeking guidance on the items highlighted in YELLOW:

1. Please double check the WMT FCF Facaset tab - PV of cash flows is 1.3 Trillion seems very high. All forecast are based on own assumptions.

2. on WMT Marginal Rate tESO tab see Yellow item - where is the avg stock price at exercise in the 10K???

3. on WMT Oustanding ESO tab see Yellow item - where is this in the 10K???

I am just looking for guidance on where some numbers are in the 10K and a formula in excel.

** See ATTACHED file(s) for complete details **

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