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    Wal-Mart: Using 10-K, analyze working capital; AR and AP

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    Obtain at least two years of financial information pertaining to the company from its most recent annual report (10-K). Then, use the information contained in the annual report to calculate the following for your selected organization:

    2) Accounts receivables period
    3) Accounts payable period

    Based on your calculations and other research, prepare an analysis of your selected company's working capital in which you address the following items:

    2) Make recommendations for ways that the organization could improve its operating cycle.

    WALMART INCOME STATEMENT
    2008 2007 2006 2005 2004
    Period End Date 01/31/2008 01/31/2007 01/31/2006 01/31/2005 01/31/2004
    Period Length 12 Months 12 Months 12 Months 12 Months 12 Months
    Stmt Source 10-K 10-K 10-K 10-K 10-K
    Stmt Source Date 03/31/2008 03/27/2007 03/27/2007 03/27/2007 04/09/2004
    Stmt Update Type Updated Updated Restated Restated Updated

    Revenue 374,526.0 344,992.0 308,945.0 281,488.0 256,329.0
    Other Revenue, Total 4,273.0 3,658.0 3,156.0 2,822.0 2,352.0
    Total Revenue 378,799.0 348,650.0 312,101.0 284,310.0 258,681.0

    Cost of Revenue, Total 286,515.0 264,152.0 237,649.0 216,832.0 198,747.0
    Gross Profit 88,011.0 80,840.0 71,296.0 64,656.0 57,582.0

    Selling/General/Administrative Expenses, Total 70,288.0 64,001.0 55,739.0 50,178.0 44,909.0
    Research & Development 0.0 0.0 0.0 0.0 0.0
    Depreciation/Amortization 0.0 0.0 0.0 0.0 0.0
    Interest Expense (Income), Net Operating 0.0 0.0 0.0 0.0 0.0
    Unusual Expense (Income) 0.0 0.0 0.0 0.0 0.0
    Other Operating Expenses, Total 0.0 0.0 0.0 0.0 0.0
    Operating Income 21,996.0 20,497.0 18,713.0 17,300.0 15,025.0

    Interest Income (Expense), Net Non-Operating -1,798.0 -1,529.0 -1,178.0 -980.0 -832.0
    Gain (Loss) on Sale of Assets 0.0 0.0 0.0 0.0 0.0
    Other, Net 0.0 0.0 0.0 0.0 0.0
    Income Before Tax 20,198.0 18,968.0 17,535.0 16,320.0 14,193.0

    Income Tax - Total 6,908.0 6,365.0 5,803.0 5,589.0 5,118.0
    Income After Tax 13,290.0 12,603.0 11,732.0 10,731.0 9,075.0

    Minority Interest -406.0 -425.0 -324.0 -249.0 -214.0
    Equity In Affiliates 0.0 0.0 0.0 0.0 0.0
    U.S. GAAP Adjustment 0.0 0.0 0.0 0.0 0.0
    Net Income Before Extra. Items 12,884.0 12,178.0 11,408.0 10,482.0 8,861.0

    Total Extraordinary Items
    -153.0 -894.0 -177.0 -215.0 193.0
    Discontinued Operations

    Net Income 12,731.0 11,284.0 11,231.0 10,267.0 9,054.0

    Total Adjustments to Net Income
    0.0 0.0 0.0 0.0 0.0
    Preferred Dividends

    General Partners' Distributions

    Basic Weighted Average Shares 4,066.0 4,164.0 4,183.0 4,259.0 4,363.0
    Basic EPS Excluding Extraordinary Items 3.17 2.92 2.73 2.46 2.03
    Basic EPS Including Extraordinary Items 3.13 2.71 2.68 2.41 2.08

    Diluted Weighted Average Shares 4,072.0 4,168.0 4,188.0 4,266.0 4,373.0
    Diluted EPS Excluding Extrordinary Items 3.16 2.92 2.72 2.46 2.03
    Diluted EPS Including Extraordinary Items 3.13 2.71 2.68 2.41 2.07

    Dividends per Share - Common Stock Primary Issue 0.88 0.67 0.6 0.52 0.36
    Gross Dividends - Common Stock 3,586.0 2,802.0 2,511.0 2,214.0 1,569.0
    Interest Expense, Supplemental 2,103.0 1,809.0 1,420.0 1,184.0 996.0
    Depreciation, Supplemental 6,317.0 5,459.0 4,645.0 4,185.0 3,700.0

    Normalized EBITDA 28,313.0 25,956.0 23,358.0 21,485.0 18,725.0
    Normalized EBIT 21,996.0 20,497.0 18,713.0 17,300.0 15,025.0
    Normalized Income Before Tax 20,198.0 18,968.0 17,535.0 16,320.0 14,193.0
    Normalized Income After Taxes 13,290.0 12,603.0 11,732.0 10,731.0 9,075.0
    Normalized Income Available to Common 12,884.0 12,178.0 11,408.0 10,482.0 8,861.0

    Basic Normalized EPS 3.17 2.92 2.73 2.46 2.03
    Diluted Normalized EPS 3.16 2.92 2.72 2.46 2.03

    WALMART BALANCE SHEET
    2008 2007 2006 2005 2004
    Period End Date 01/31/2008 01/31/2007 01/31/2006 01/31/2005 01/31/2004

    Stmt Source 10-K 10-K 10-K 10-K 10-K
    Stmt Source Date 03/31/2008 03/31/2008 03/27/2007 03/29/2006 03/31/2005
    Stmt Update Type Updated Restated Reclassified Restated Restated

    Assets
    Cash and Short Term Investments
    5,569.0 7,767.0 6,193.0 5,488.0 5,199.0
    Cash & Equivalents

    Total Receivables, Net
    3,654.0 2,840.0 2,575.0 1,715.0 1,254.0
    Accounts Receivable - Trade, Net

    Total Inventory 35,180.0 33,685.0 31,910.0 29,762.0 26,612.0
    Prepaid Expenses 3,182.0 2,690.0 2,468.0 1,889.0 1,356.0
    Other Current Assets, Total 0.0 0.0 679.0 0.0 0.0
    Total Current Assets 47,585.0 46,982.0 43,825.0 38,854.0 34,421.0

    Property/Plant/Equipment, Total - Net 97,017.0 88,440.0 77,865.0 68,118.0 59,023.0
    Goodwill, Net 16,071.0 13,759.0 12,097.0 10,803.0 9,882.0
    Intangibles, Net 0.0 0.0 0.0 0.0 0.0
    Long Term Investments 0.0 0.0 0.0 0.0 0.0
    Note Receivable - Long Term 0.0 0.0 0.0 0.0 0.0
    Other Long Term Assets, Total 2,841.0 2,406.0 4,400.0 2,379.0 2,079.0
    Other Assets, Total 0.0 0.0 0.0 0.0 0.0
    Total Assets 163,514.0 151,587.0 138,187.0 120,154.0 105,405.0

    Liabilities and Shareholders' Equity
    Accounts Payable 30,370.0 28,484.0 25,101.0 21,987.0 19,425.0
    Payable/Accrued 0.0 0.0 0.0 0.0 0.0
    Accrued Expenses 15,799.0 14,675.0 13,274.0 12,120.0 10,671.0
    Notes Payable/Short Term Debt 5,040.0 2,570.0 3,754.0 3,812.0 3,267.0
    Current Port. of LT Debt/Capital Leases 6,229.0 5,713.0 4,879.0 3,982.0 3,100.0
    Other Current Liabilities, Total 1,016.0 706.0 1,817.0 1,281.0 1,377.0
    Total Current Liabilities 58,454.0 52,148.0 48,825.0 43,182.0 37,840.0

    Total Long Term Debt
    33,402.0 30,735.0 30,096.0 23,258.0 20,099.0
    Long Term Debt

    Capital Lease Obligations

    Deferred Income Tax 5,111.0 4,971.0 4,501.0 2,978.0 2,359.0
    Minority Interest 1,939.0 2,160.0 1,465.0 1,340.0 1,484.0
    Other Liabilities, Total 0.0 0.0 129.0 0.0 0.0
    Total Liabilities 98,906.0 90,014.0 85,016.0 70,758.0 61,782.0

    Redeemable Preferred Stock 0.0 0.0 0.0 0.0 0.0
    Preferred Stock - Non Redeemable, Net 0.0 0.0 0.0 0.0 0.0
    Common Stock 397.0 413.0 417.0 423.0 431.0
    Additional Paid-In Capital 3,028.0 2,834.0 2,596.0 2,425.0 2,135.0
    Retained Earnings (Accumulated Deficit) 57,319.0 55,818.0 49,105.0 43,854.0 40,206.0
    Other Equity, Total 3,864.0 2,508.0 1,053.0 2,694.0 851.0
    Total Equity 64,608.0 61,573.0 53,171.0 49,396.0 43,623.0

    Total Liabilities & Shareholders' Equity 163,514.0 151,587.0 138,187.0 120,154.0 105,405.0

    Total Common Shares Outstanding 3,973.0 4,131.0 4,165.0 4,234.0 4,311.0
    Total Preferred Shares Outstanding 0.0 0.0 0.0 0.0 0.0

    © BrainMass Inc. brainmass.com April 3, 2020, 6:09 pm ad1c9bdddf
    https://brainmass.com/business/leasing/195170

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    This solution provides answers to various questions regarding a company's finances.

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