Analyze your company’s liability section of the comparative balance sheets. Has the composition of current and long-term liabilities changed significantly over the period? Explain? Liabilities and Equity sections of Walmart's Balance Sheet As of January 31, (Amounts in millions) 2019 2018 LIABILITIES AND EQUITY Current liabilities: Short-term borrowings $ 5,225 $ 5,257 Accounts payable 47,060 46,092 Accrued liabilities 22,159 22,122 Accrued income taxes 428 645 Long-term debt due within one year 1,876 3,738 Capital lease and financing obligations due within one year 729 667 Total current liabilities 77,477 78,521 Long-term debt 43,520 30,045 Long-term capital lease and financing obligations 6,683 6,780 Deferred income taxes and other 11,981 8,354 Total liabilities 139,661 123,700
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
Analyze your company’s liability section of the comparative balance sheets. Has the composition of current and long-term liabilities changed significantly over the period?
Explain?
| Liabilities and Equity sections of Walmart's |
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As of January 31, | |
| (Amounts in millions) | 2019 | 2018 |
| LIABILITIES AND EQUITY |
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| Current liabilities: |
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| Short-term borrowings | $ 5,225 | $ 5,257 |
| Accounts payable | 47,060 | 46,092 |
| Accrued liabilities | 22,159 | 22,122 |
| Accrued income taxes | 428 | 645 |
| Long-term debt due within one year | 1,876 | 3,738 |
| Capital lease and financing obligations due within one year | 729 | 667 |
| Total current liabilities | 77,477 | 78,521 |
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| Long-term debt | 43,520 | 30,045 |
| Long-term capital lease and financing obligations | 6,683 | 6,780 |
| 11,981 | 8,354 | |
| Total liabilities |
139,661 |
123,700 |
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