Financial Reporting Problem, Part 1
April 20, 2014
In this paper we will discuss Walmart’s Balance sheet and Income Statement. We will analyze the company’s total assets at the end of the most recent annual reporting year and to why it is important. We then will talk about the company’s total assets, how much cash and cash equivalents did the company have, as well as, the amount of accounts payable at the most recent year, and from the previous year. What the company’s net revenues are from the last three annual reporting periods, the change in dollars in the company’s net income from the most recent annual reporting period to the previous annual reporting period. We will talk about the company’s total assets at the end of the most recent year and the previous year from the annual reporting period. Lastly, we will discuss as to what information that has been obtained within this paper that would be important to a potential investor, employee and so forth.
Financial Reporting Problem, Part 1
The total assets for Wal-Mart as of January 31, 2013 were $203,105,000. The reason this is important for a company or business to know, is so the business can have a better understanding of how much the company is worth. Knowing how much a company is worth is beneficial because the assets can be used as collateral for a loan. Also knowing the assets and comparing total assets to previous years can show if a company is growing and expanding or shrinking. For Wal-Mart, the comparison from the previous year shows that the total assets increased. As of January 31, 2012 the company showed total assets of $193,406,000. With the comparison from January 31, 2012 to the current figure from January 31, 2013 Wal-Mart grew and/or expanded in total assets by 9,699,000.
Cash and Cash Equivalent
The total cash and cash equivalent for the end of the year for Wal-Mart as of January 31, 2013 is 7,781,000. Knowing the total cash and cash equivalent will help the company to know how much the company has to spend. No organization has the intention of spending more money then what the company has available. If a company has very low cash or cash equivalent then the company will need to consider if a loan is needed. In consideration for a loan total expenses needs to be considered. If a company like Wal-Mart has enough cash to pay all expenses then a loan isn't needed, but if the expense exceeds the cash then a loan is needed. Also another factor to consider on getting a loan is if the money coming into the company will be enough to pay the loan back.
The accounts payable for the end of the most recent annual reporting period that ended January 31, 2013 is 1,061,000. Knowing the accounts payable helps a company to know one of the companies expenses. This is important because if the companies accounts payable are higher than the money coming in, that could be a problem for the business. Comparing to previous years accounts payable can show many different problems or benefits for the business.
Walmart Inc. net revenues from the last three annual reporting periods are as follows; On January 31st, 2011 in the amount of $421,849,000. On January 31st, 2012 the net revenues were; $446,950,000 and on January 31st, 2013 it totaled to the amount of $469,162,000. From looking at the reports Walmart Inc. has had an increased from 2011 to 2012 in the amount of $25,101,000 and from 2012 to 2013 has increased to $22,212,000. Net Revenue helps account for certain price reductions, adjustments and refunds. This is necessary to get the general measure of the real top line rather than the bottom line.
Looking at Walmart’s income statement from the net income of 2013 on January 31st it totaled in $16,999,000. The change from 2012 and 2013 is a increase in $1,300,000. The net...
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