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The following table gives abbreviated balance sheets and income statements for Walm Balance Sheet (figures in $ millions) End of Start of Year Year Assets Current assets: $ 6,796 5,654 43,823 Cash and marketable securities 6,907 5,875 43,086 1,981 Accounts receivable Inventories 3,551 $ 59,824 Other current assets Total current assets $ 57,849 Fixed assets: Net fixed assets $114,858 $114,218

The following table gives abbreviated balance sheets and income statements for Walm Balance Sheet (figures in $ millions) End of Start of Year Year Assets Current assets: $ 6,796 5,654 43,823 Cash and marketable securities 6,907 5,875 43,086 1,981 Accounts receivable Inventories 3,551 $ 59,824 Other current assets Total current assets $ 57,849 Fixed assets: Net fixed assets $114,858 $114,218

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following table gives abbrevlated balance sheets and income statements for Walmart. Balance Sheet (figuren in $ milliions) End of Start of Year Year Assets Current assets: $ 6,796 $ 6,907 5,875 Cash and marketable securities Accounts receivable 5,654 TRu Inventories 43,086 1,981 $ 57,849 43,823 Other current assets 3,551 Total current assets $ 59,824 Fixed assets: Net fixed assets $114,858 $114,218 es Other long-term assets 30,080 26,998 Total assets $204,762 $199,065 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 46,132 $ 41,473 Other current liabilities 32,469 25,535 Total current liabilities $ 78,601 $ 67,008 Long-term debt 36,865 42,058 Other long-term liabilities Total liabilities 11,347 $126,813 12,121 $121,187 * 77,878 Total shareholders' equity 77,949 Total liabilities and shareholders' equity $204,762 $199,065 Income Statement (figures in $ millionsſ Net sales Cost of goods sold $500,383 $485,913 373,436 361,296 Selling, general, and administrative expenses 96,021 10,569 91,813 10,120 Depreciation Earnings before interest and taxes (EBIT) $ 22,684 2,307 $ 20,357 2.218 Interest expense Taxable income $ 20,377 $ 18,139 4,600 Таx 7,132 $ 13,539 6,164 Net income $ 13,245 6,735 Dividends Addition to retained earnings $ 7,375 $ 6,510 Assume a tax rate of 35%. Calculate the following using balance-sheet figures from the start of the year and Income stateme from the end of the year: a. Calculate the return on assets. (Enter your answer as a percent rounded to 2 decimal places.) b. Calculate the operating profit margin. (Enter your answer as a percent rounded to 2 decimal places.) c. Calculate the sales-to-assets ratio. (Round your answer to 2 decimal places.) d. Calculate the inventory turnover. (Round your answer to 2 decimal places.) e. Calculate the debt-equity ratio. (Round your answer to 4 decimal places.) f. Calculate the current ratio. (Round your answer to 3 decimal places.) g. Calculate the quick ratio. (Round your answer to 4 decimal places.) Return on assets % a. b. Operating profit margin % Sales-to-assets ratio C. d. Inventory turnover Debt-equity ratio e f Current ratio Quick ratio
Transcribed Image Text:The following table gives abbrevlated balance sheets and income statements for Walmart. Balance Sheet (figuren in $ milliions) End of Start of Year Year Assets Current assets: $ 6,796 $ 6,907 5,875 Cash and marketable securities Accounts receivable 5,654 TRu Inventories 43,086 1,981 $ 57,849 43,823 Other current assets 3,551 Total current assets $ 59,824 Fixed assets: Net fixed assets $114,858 $114,218 es Other long-term assets 30,080 26,998 Total assets $204,762 $199,065 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 46,132 $ 41,473 Other current liabilities 32,469 25,535 Total current liabilities $ 78,601 $ 67,008 Long-term debt 36,865 42,058 Other long-term liabilities Total liabilities 11,347 $126,813 12,121 $121,187 * 77,878 Total shareholders' equity 77,949 Total liabilities and shareholders' equity $204,762 $199,065 Income Statement (figures in $ millionsſ Net sales Cost of goods sold $500,383 $485,913 373,436 361,296 Selling, general, and administrative expenses 96,021 10,569 91,813 10,120 Depreciation Earnings before interest and taxes (EBIT) $ 22,684 2,307 $ 20,357 2.218 Interest expense Taxable income $ 20,377 $ 18,139 4,600 Таx 7,132 $ 13,539 6,164 Net income $ 13,245 6,735 Dividends Addition to retained earnings $ 7,375 $ 6,510 Assume a tax rate of 35%. Calculate the following using balance-sheet figures from the start of the year and Income stateme from the end of the year: a. Calculate the return on assets. (Enter your answer as a percent rounded to 2 decimal places.) b. Calculate the operating profit margin. (Enter your answer as a percent rounded to 2 decimal places.) c. Calculate the sales-to-assets ratio. (Round your answer to 2 decimal places.) d. Calculate the inventory turnover. (Round your answer to 2 decimal places.) e. Calculate the debt-equity ratio. (Round your answer to 4 decimal places.) f. Calculate the current ratio. (Round your answer to 3 decimal places.) g. Calculate the quick ratio. (Round your answer to 4 decimal places.) Return on assets % a. b. Operating profit margin % Sales-to-assets ratio C. d. Inventory turnover Debt-equity ratio e f Current ratio Quick ratio
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