Preview

Week 5 Assignment Final Paper

Better Essays
Open Document
Open Document
1729 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Week 5 Assignment Final Paper
Wal-Mart Financial Analysis Report
Michael Thomas
ACC205: Principles of Accounting Instructor: Mark Stricklett
November 10, 2014

Wal-Mart Financial Analysis Report In accounting there is much to be learned, about the financial aspects of a business. In the past five weeks I have learned the importance of financial reports and how they relate to the success of an establishment. These reports may include balance sheets and income statements, which help accountants and the public grasp the overall financial condition of a company. The information in these reports is really significant to, managers, owners, employees, and investors. Managers of a business can take and deduce financial figures from the income statement which details monthly earnings as well as the company’s liabilities and equity position, and even project future yearly budgets. After looking into several companies, I decided to research Wal-Mart because this store intrigued me from a financial standpoint and my family shops there very frequently. In addition, I really wanted to know where this giant corporation stood financially. As I evaluate Wal-Mart’s financial documents I will exemplify and explain the importance of the horizontal analysis using detailed gauges taken from Wal-Mart’s previous past two years of yearly financial records. I will hone in on Wal-Mart’s last two years, Current Ratio, Quick Ratio, Cash to Current Liabilities Ratio, and lastly I will investigate Wal-Mart’s net liquidity potential. For my final examination I will communicate my thoughts and investment suggestions for potential future investors who want to be stockholders in Wal-Mart. The first of many things that pondered me was how this huge corporation emerged. Well in the year 1969 a gentleman by the name of Sam Walton had opened several Wal-mart chains. Now this small chain of Wal-marts from 1969 has expanded globally to over eleven thousand stores around the


References: Anonymous, (2012) Wal-Mart Web Site, Retrieved from: http://corporate.walmart.com/ Anonymous, (2012) Seeking Alpha, Why Wal-Mart Beats Its Competitors, Retrieved from: http://seekingalpha.com/article/562821-why-wal-mart-beats-its-competitors Perr, J. (2012) Daily Kos, Wal-Mart Owners Look to Slash Federal tax Payments, Retrieved from: http://www.dailykos.com/story/2012/11/21/1163884/-Wal-Mart-owners-look-to-slash-federal-tax-payments# Wainwright, S. (Ed.). (2012). Principles of Accounting: Volume I. San Diego, CA: Bridgepoint Education, Inc. Anonymous, (2012) Wal-Mart Web Site, Retrieved from: http://corporate.walmart.com/
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Better Essays

    Acc 561 Financial Statements Differential
    • 910 Words
    • 4 Pages

    Acc 561 Financial Statements Differential

    Financial statements provide documentation of a company’s financial history for a set timeframe. One of the financial statement used by investors, creditors, and mangers is the balance sheet. The second statement used by accountant’s income statement, which is also important to shareholders. The third statement is the retained earnings statement, and the fourth financial statement is the statement of cash flows. Each financial statement has a different purpose and shows different aspects of the company’s finances. However, these financial statements are integrated and work together to provide shareholders financial information. This paper will defines the four financial statements while explaining the financial statement most suitable for either an investor, creditor, or management.…

    • 910 Words
    • 4 Pages
    Better Essays
    Read More
  • Powerful Essays

    Acc 205 Week 1 Assignment
    • 1709 Words
    • 7 Pages

    Acc 205 Week 1 Assignment

    Walther. (2012). Principles of Accounting: Volume I (1st ed.). San Diego, CA: Bridgepoint Education, Inc. www.ashford.edu…

    • 1709 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Good Essays

    Relationship between Various Financial Statements
    • 651 Words
    • 3 Pages

    Relationship between Various Financial Statements

    Accounting and financial statements are the language of business. Financial statements provide information to help users such as managers and investors analyze accounting data to help make decisions, manage risk, and predict future outcomes. This week’s paper Team B will discuss how the statement interact with one another, how changing one affects other statements, and the importance to understand the relationship between the statements.…

    • 651 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Getting to Know the Financial Statements - Starbucks
    • 5204 Words
    • 21 Pages

    Getting to Know the Financial Statements - Starbucks

    The purpose of this assignment is to increase your understanding of the information contained in a firm’s financial statements and of the relationship between the statements. As you study financial accounting, we will focus on using financial information in a meaningful way, to understand the firm’s past performance and project its future performance.…

    • 5204 Words
    • 21 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Financial Statements: Industry Comparison
    • 1549 Words
    • 7 Pages

    Financial Statements: Industry Comparison

    More often managers are exposed to financial data and the need exists to develop knowledge and understanding of financial accounting concepts and principals. Nearly all companies prepare financial statements of some type and the complexity of those statements will vary. The analysis and interpretations of financial statements is made easier by the preparation of financial reports that can be produced daily, monthly, quarterly, and yearly. The following paper is intended to be a comparative financial analysis of four publicly traded companies within the same industry as Riordan Manufacturing, Huffman Trucking, Kudler Fine Foods, and McBride Financial Services. For the purpose of this research paper an analysis of financial statements will include the balance sheet and income statements for each company. An analysis of financial statements must serve as gauge of overall health of a company.…

    • 1549 Words
    • 7 Pages
    Better Essays
    Read More
  • Good Essays

    Examining Financial Statements - Landry's Restaurants
    • 1196 Words
    • 5 Pages

    Examining Financial Statements - Landry's Restaurants

    Financial statement users around the globe use financial statements to evaluate the performance of companies (Fundamentals of Financial Accounting, 2006). In order to locate a company’s reported assets, liabilities, expenses and revenues, statement users rely on four types of financial statements. The four financial statements include: Balance Sheet, Income Statement, Statement of Retained Earnings, and Statement of Cash Flows (Fundamentals of Financial Accounting, 2006, p. 6). Each of these reports provides different information to the financial statement user. The Balance Sheet reports at a point in time: a company’s assets (what it owns), liabilities (what it owes) and stockholder’s equity (what is left over for the owners) (Fundamentals of Financial Accounting, 2006, p.7). The Income Statement shows whether a business made a profit (net income) during a specific period of time (Fundamentals of Financial Accounting, 2006, p. 10). The Statement of Retained Earnings illustrates what portions of the company’s earnings was paid to stockholders and retained by the company for future operations (Fundamentals of Financial Accounting, 2006, p.12). Finally, the Statement of Cash Flows reports summarizes how a business’ “operating, investing, and financial activities caused its cash balance to change over a particular range of time” (Fundamentals of Financial Accounting, 2006, p.13).…

    • 1196 Words
    • 5 Pages
    Good Essays
    Read More
  • Better Essays

    Interpretation of Financial Statements
    • 1699 Words
    • 7 Pages

    Interpretation of Financial Statements

    Financial statements provide information about the net worth of a business at a specific point of time and its trading performance during a given period. The value of assets owned, liabilities and capital invested are shown as well as income generated from operating activities. These are crucial information that we as investors look at first glance before going through deeper analysis.…

    • 1699 Words
    • 7 Pages
    Better Essays
    Read More
  • Better Essays

    Wal-Mart Operations Management Analysis
    • 1266 Words
    • 6 Pages

    Wal-Mart Operations Management Analysis

    Wal-Mart Stores, Inc., the largest company in the world, has achieved leadership in the retail industry as a result of its efficient supply chain management practices. Setting record sales and earnings for fiscal year 2008, Wal-Mart’s total net sales were $374.5 billion, an 8.6 percent increase over the previous fiscal year and a record for any retailer.…

    • 1266 Words
    • 6 Pages
    Better Essays
    Read More
  • Good Essays

    Financial Accounting Syllabus
    • 623 Words
    • 3 Pages

    Financial Accounting Syllabus

    Course Objectives: This course introduces the fundamentals of financial accounting to graduate students. Throughout the course, communication skills will be emphasized. After completing the course, a student is expected to understand how accounting information is produced, interpret and analyze financial statements, communicate firms’ financial health and appreciate ethical issues in accounting. Since the course content will be approached from the perspective of a user, rather than a producer, of financial accounting information, a student’s analytical ability is emphasized.…

    • 623 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Project
    • 3228 Words
    • 13 Pages

    Project

    Financial statements are prepared for decision making. They play a dominant role in setting the frame work of managerial decision. But the information provides in the financial statement is not an end in itself as no meaningful conclusions can be drown from these statement alone. However, the information provided the financial statement is of immense use in making decision through analyses and interpretation of financial statements. Financial analyses is ‘the process of identifying financial strength and weakness of the firm by properly establishing relation ship between the items in the balance sheet and profit and loss accounts’…

    • 3228 Words
    • 13 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Choosing the Right Security Investments
    • 2500 Words
    • 10 Pages

    Choosing the Right Security Investments

    Wild J., J., Shaw W., K., & Chiappetta, B. (2011). Fundamental accounting principles. In I. I. Robert D. (Ed.), Fundamental Accounting Principles (20 ed., pp. 552-604). New Jersey : McGraw Hill, Inc.…

    • 2500 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Accounting harmonization
    • 2438 Words
    • 10 Pages

    Accounting harmonization

     Financial accounting’s aim is to allow all the users of interested parties to understand firm’s situations in global and synthetic way. The financial statement produce information for managers as well as for the other users parties (Creditors, Customers, suppliers, employees, stakeholder and even competitors). These different type of users needs different type of information, but they have to satisfy their needs from three documents: Balance sheet, Income statement, and Financial statement. Managers are the most preferred user; they can access to all kind of documents that they required, because they have to make strategic decisions about the development of the firm and they have to forecast the future strategies. Other user have different possibility to reach information, and this depends on the type of users, and on the needs of the firm. For examples, if the firm needs some financing, sometimes banks and investors ask for some additional documents, and it is company’s interest to give them. So users like bank and investors have more power to reach the information that they need. Investors can reach just the Financial statement and all the public available information that the company are required do give.…

    • 2438 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Best Essays

    Term Paper final 1
    • 3478 Words
    • 12 Pages

    Term Paper final 1

    A company’s financial reporting amalgamates important documents to create an effective spreadsheet to simplify the financial data of an organization. It captures much of the information that organizations prepare, publish, and use. Financial reporting plays an integral role in the capital markets and economic stability and growth, and efforts to enhance its quality are vital. A Sound Financial Reporting provides us relevant, meaningful, reliable, accurate and comprehensive reporting of management stewardship whether in the form of numbers or other operating data. It is increasingly important for businesses to be financially transparent and for governments to establish a sound regulatory environment for corporate financial reporting. Sound financial reporting can benefit business by some ways just like valuing business, easy to identify items, present business to prospective buyers effectively, able to explain changes in the business over time, spend less money on accounting and consulting fees etc. When we need to sell the business accurate financial data helps a lot by many ways. These are streamlining valuation, making it easy to answer buyers' questions, confirming your company's value during due diligence, avoiding cash outlays after closing the sale. Financial reporting is the fundamental source of independently certified information about the performance of…

    • 3478 Words
    • 12 Pages
    Best Essays
    Read More
  • Powerful Essays

    “Growth and Development of Renwick, Jajneswar & Co. (Bd) Ltd.”
    • 18148 Words
    • 73 Pages

    “Growth and Development of Renwick, Jajneswar & Co. (Bd) Ltd.”

    Financial Statements are derived from a historical cost-based accrual accounting system employing system employing generally accepted accounting principles. The two primary statements are the income statement and the balance sheets. A Company 's income statement reports operations over a period; the balance sheet reports its assets, equities and liabilities at a specific point in time. For the investors, careful analysis of these statements can provide some clues about the company 's future prospect. For management, careful analysis can help it plan for and anticipate the future. Thus, the point of financial analysis is to diagnose trends that are indicative of the magnitude, timing of risking of the company 's future cash flows. The financial statements, if utilized and interpreted carefully, can provide 'symptoms ' of the condition of the firm. That is just as a physician uses symptoms for diagnosis, a financial analyst or manager help to utilize his experience to interpret the 'symptoms ' revealed by the financial statements to assess the financial, economic and managerial conditions of the company.…

    • 18148 Words
    • 73 Pages
    Powerful Essays
    Read More
  • Better Essays

    Financial Statements Paper Essay Example
    • 1001 Words
    • 4 Pages

    Financial Statements Paper Essay Example

    The following paper will talk about the income statement and what the income statement tells about the company including why this statement is important and what business decisions can be made using the income statement. Also, the paper will talk about the balance sheet and what the balance sheet tells about the company. Also, the reason the balance sheet is important and what business decisions can be will be covered. Lastly, it will talk about the statement of cash flows and what it tells about the company. It will talk about what kind of business decisions can be made using the statement of cash flows. In the conclusion the paper will provide the information how data provided in the statements can assist in making business decisions and what information is not provided that can assist managerial decision making.…

    • 1001 Words
    • 4 Pages
    Better Essays
    Read More