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Wal-Mart's Financial Situation

I need help with the following 2 questions.

1. Evaluate the financial situation of Wal-Mart before the acquisition of Woolco in Canada.

2. Evaluate the financial situation of Wal-Mart after the acquisition of Woolco in Canada.

Please attached any calculations to support your evaluations. Thank you.

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1. Evaluate the financial situation of Wal-Mart before the acquisition of Woolco in Canada.

Wal-Mart's net sales and income increased from 1990 to 1994. This includes the year before the acquisition of Woolco (1993) and the year of the acquisition (1994) as reported in annual reports.

For example, in the billions, Wal-Mart's net sales for 1990 (25.8); 1991 (32.6 ), 1992 (43.9 ), 1993 (55.5 ), 1994 (67.3 ). The net income for 1993 and 1994 were 1.99 and 2.3 respectively (see http://walmartstores.com/Media/Investors/1994AR.pdf, p. 3)

Specifically, in 1993 (net sales: $55,483,771,000) and net income of $1,994,794,000, before the acquisition with Woolco in 1994 (see http://walmartstores.com/Media/Investors/1993AR.pdf, p. 3).

In 1994, the net income was 2,333,277,000 compared to 1,994,794,000 in 1993, before the acquisition ...

Solution Summary

This solution evaluates the financial situation of Wal-Mart before and after the acquisition of Woolco in Canada.

$2.19