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Financial Statement Review Paper

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Financial Statement Review Paper
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Financial Statement Review of WalMart 2014

What is the net income for the current fiscal year? Is it up or down from the prior year? Why would this information be important to investors?

The net income of the company for the current fiscal year is $26,872 million. This year net income has decreased from last year (2013) net income of $27,725 million. The continuous increase in prior years shows the profitability in WalMart. The trend of increase in net income can be seen as below: Year Operating Income 2010 23,969 2011 25,508 2012 26,491 2013 27,725 2014 26,872

Year EPS Dividend per Share 2010 3.72 1.09 2011 4.18
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Any investor will like to invest in WalMart because it is growing and earning profits. When someone invests in a company they are looking for the return for their investment, therefore they have conducted proper research to make sure they will in fact earn profit.

What is the ending balance in stockholders’ equity? Why would a labor union potentially be interested in this information?

The stockholder’s equity is the amount invested by the stockholders and the retained earnings belong to the stockholders. The present stockholder’s equity is $76,343 million. There is continuous increase in stockholder’s equity.

Increase in the stockholder’s equity of WalMart is as follows: Year Stockholder’s Equity 2010 70,468
2011 68,542 2012 71,343 2013 76,343 2014
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Another useful aspect of the reports is that managers are able to communicate with other individuals about how to properly run the company.

What is the total cash flow from operation?

The Net operating cash flow has decreased from in operations to $23.26 billion from $25.59 in 2013 and $24.26 in 2012.

What financial statement user would find this information most important?

My personal favorite financial statement is the income statement because it shows both profit and loss. The income statement is broken down into two sections, operating and non-operating sections. The portion that deals directly with operating is important to investors because it discloses information about revenues that directly relate to business operations. The non- operating portion of the income statement is important because it reports irregular sales or sales that are not directly related to the business. An example of this would be selling equipment or one time purchases of

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