Are the companies financed primarily with debt or equity? Why? Walmart Inc(Million)Cash and cash equivalentsReceivables, netInventoriesPrepaid expenses and otherTotal Current AssetsProperty and equipment, netFinance lease right-of-use assets, netProperty and equipment, including finance leaseright-of-use assets, netOperating lease right-of-use assetsGoodwillOther Long-Term assetsLong-Term assetsTotal AssetsCurrent liability:Short term BorrowingAccount PayableAccrued LiabilityAccrued Income TaxLong Term Debt due within yearOperating lease obligation due within one yearFinance Lease obligation due within one yearTotal Current LiabilityLong-term debtLong-term operating lease obligationsLong-term finance lease obligationsDeferred income taxes and otherStockholders' Equity:Common StockCapital in Excess of Par ValueRetained earningsAccumulated other Comprehensive lossTotal Walmart Shareholders EquityNon-Controlling InterestTotal EquityTotal Liability and EquityTarget CorporationCash and cash equivalentsInventoryOther current assetsTotal current assetsProperty and equipmentLandBuildings and improvementsFixtures and equipmentComputer hardware and softwareConstruction-in-progressAccumulated depreciationProperty and equipment, netOperating lease assetsOther noncurrent assetsTotal assetsAccounts payableAccrued and other current liabilitiesCurrent portion of long-term debt and other borrowingsTotal current liabilitiesLong-term debt and other borrowingsNoncurrent operating lease liabilitiesDeferred income taxesOther noncurrent liabilitiesTotal noncurrent liabilitiesShareholders' investment:Common stockAdditional paid-in capitalRetained earningsAccumulated other comprehensive lossTotal shareholders' investmentTotal liabilities and shareholders' investmentCurrent year202214,7608,28056,5111,51981,07094,5154,35198,86613,75829.01422.152163,790244,86041055,26126,6068512,8031,48351187,37934,86413,0094,24313,4742764,83986,904-876683,2528,63891,891244,860Current year2022$5.91113,9021,76021,5736.16432,9856,4072,5051,257-21,13728,1812,5561,50153,811$ 15,4786,09817121,74713.5492,4931,5661,62919,237396,4216,920-55312,827$53,811%6%3%23%1%33%39%2%40% 96,2066%12%9%67% 162,429 64%100% 252,49613,64228,983 11%23,598 9%100%0%22423% 49.14137,9662422%6%11%0%1%3.1151% 1,4660%491Previous %Year202136% 92,64514% 41,1945% 12.9098%20,86190,067 36%92,20137%4,0052%17,741 7%6,516 3%44,949 18%0%2822%364635% 88,763-4% -11,76634% 80,92511 %26%3%40 %11%61%12%5%2%-39%52 %5%3%100%29%11 %J|||||||||||||0%40 %25 %5%3%3%36%3,84714,3700%12 %13 %-1%24%35%-5%32%6,606 3%4%38% 87,531 35%100% 252,496 100%38%5%% Previous %Year2021$8,511 17%10,653 21%1,592 3%20,756 41%0%19%15%0%▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬37%16%5%1%1%0%|||||2%6%▬▬▬▬▬▬▬▬▬0%1%6,141 12%31.557 62%5,914 12%2.7655%780-20,278H%26,879 52%4%2,2271,386$51,2483%2%-40$12,859 25%6,122 12%1,144100%2%20,125 39%11,536 23 %2,218 4%9902%1,939 4%16,683 33 %426,3298,825-75614,440 28%0%12%17%-1%100% $51,248 100

Capital financing: Capital is the monetary value that any organization needs to use for operating the organization. Capital financing can be done using debt financing or equity financing.As per the financial statements presented in the question, Walmart Inc. and Target Inc. are financed by Debt, as the common stock of the companies forms 0% of the total equity and liability in 2022, while long-term debt is 14% and 25% respectively. Primary financing by debt has the following benefits: 1. Retain control: By using debt financing, a company can retain control. The old shareholders do not lose control over new shareholders as there are no new shareholders. 2. Tax advantages: The interest on debts is tax deductible, hence by using debt financing, companies can reduce their taxable income and tax liability. 3. Ease in the planning process: By using debt financing, the control is retained by the small group of existing shareholders, hence decision-making and planning become faster and easier. Debt financing is beneficial when companies do not want to lose control over the business.