ACC 514 Study Guide - Finance Lease, Cash Flow, Accrual

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cerisetermite910

11 Aug 2013

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Investing = long term assets & investments (left side balance sheet) Difference between direct (ifrs) & indirect method = only in operating section. Aspe pe gaap interest & dividends as operating, if against retained earnings = financing. Acquisition & disposal of long term assets & investments: purchase/disposal of capital assets, acquire interest in another corporation. Non-cash transactions = not reported, if significant = include in notes. Asset purchased, paid for by debt/issue shares. Income statement items & changes in ca & cl = operating, adjust net income for accruals, non- cash charges, non-operating gains/loss. Balance sheet changes in long term assets = investing. Cash received from customers (cash or on account) Cash from customers = revenue from credit sales increase in a/r. Cash paid to suppliers = cost of goods sold increase in a/p decrease in inventory. Cash for taxes = income tax expense increase in tax payable. Add things you paid for (eg. inventory, prepaids)

Related Questions

Perform a vertical and horizontal analysis of Wal-Mart Stores,Inc.âs income statements and balance sheets as of January 31, 2015.In performing this analysis, consider any notable trends or changesthat you observe that may provide useful information concerning itsfinancial condition. Also use as many yearsâ worth of statements asyou feel necessary.

WAL MART STORESINC
10-K

Statement of CashFlows

(Amounts in millions)
Fiscal Year Ended January 31,	2015	2014	2013	2012
Cash flows from operating activities:
Consolidated net income	$17,099	$16,695	$17,756	$16,387
(Income) Loss from discontinuedoperations, net of tax	(285)	(144)	(52)	21

Income from continuing operations	16,814	16,551	17,704	16,408

Adjustments to reconcileincome from continuing operations to net cash provided by operatingactivities
Depreciation and amortization	9,173	8,870	8,478	8,106
Deferred income taxes	(503)	(279)	(133)	1,050
Other operating activities	785	938	602	468

Changes in certain assets and liabilities,net of effects of acquisitions:
Increase in accounts receivable	(569)	(566)	(614)	(796)
Increase in inventories	(1,229)	(1,667)	(2,759)	(3,727)
Increase in accounts payable	2,678	531	1,061	2,687
Increase in accrued liabilities	1,249	103	271	30
(Decrease) Increase in accrued incometaxes	166	(1,224)	981	29

Net cash provided by operatingactivities	28,564	23,257	25,591	24,255

Cash flows from investing activities:
Payments for property and equipment	(12,174)	(13,115)	(12,898)	(13,510)
Proceeds from disposal of property andequipment	570	727	532	580
Proceeds from disposal of certainoperations	671	0	0	0
Other investing activities	(192)	(138)	(271)	(3,679)

Net cash used in investingactivities	(11,125)	(12,526)	(12,637)	(16,609)

Cash flows from financing activities:
Net change in short-term borrowings	(6,288)	911	2,754	3,019
Proceeds from issuance of long-termdebt	5,174	7,072	211	5,050
Payment of long-term debt	(3,904)	(4,968)	(1,478)	(4,584)
Dividends paid	(6,185)	(6,139)	(5,361)	(5,048)
Purchase of Company stock	(1,015)	(6,683)	(7,600)	(6,298)
Dividends paid to noncontrollinginterest	(600)	(426)	(282)	(526)
Purchase of noncontrolling interest	(1,844)	(296)	(132)	0
Other financing activities	(409)	(260)	(58)	(71)

Net cash used in financingactivities	(15,071)	(10,789)	(11,946)	(8,458)

Effect of exchange rates on cash	(514)	(442)	223	(33)

Net (decrease) increase in cash and cashequivalents	1,854	(500)	1,231	(845)
Cash and cash equivalents at beginning ofyear	7,281	7,781	6,550	7,395

Cash and cash equivalents at endof year	$9,135	$7,281	$7,781	$6,550


Supplemental disclosure of cash flowinformation
Income tax paid	8,169	8,641	7,304	5,889
Interest paid	2,433	2,362	2,262	2,346

burgundywasp213

Assess Wal-Mart, Stores Inc. concerning liquidity, solvency,profitability, and stock performance as of January 31, 2015. Foreach area, you should calculate the ratios we discussed in classand provide an analysis of the ratios calculated. I includehistorical stock price information and outstanding common shareinformation below.

Fiscal Year Ended	2/1/2015	2/2/2014	2/3/2013	1/29/2012
Book value per common share	?	?	?	?
Earnings per share (basic)	?	?	?	?
Earnings per share (diluted)	?	?	?	?
P/E Ratio	?	?	?	?
Dividend yield	?	?	?	?
Dividend payout	?	?	?	?
Adjusted Basic EPS	?	?	?	?
Adjusted Diluted EPS	?	?	?	?
Adjusted P/E Ratio	?	?	?	?
Adjusted dividend payout	?	?	?	?
Book value of equity	?	?	?	?
Common shares outstanding	?	?	?	?
Adjusted closing price	?	?	?	?
Dividends per share	?	?	?	?

WAL MART STORESINC
10-K

Balance Sheet

(Amounts in millions except per sharedata)
January 31,	2015	2014	2013	2012
ASSETS
Current assets:
Cash and cash equivalents	$9,135	$7,281	$7,781	$6,550
Receivables	6,778	6,677	6,768	5,937
Inventories	45,141	44,858	43,803	40,714
Prepaid expenses and other	2,224	1,909	1,551	1,685
Current assets of discontinuedoperations	0	460	37	89

Total current assets	$63,278	$61,185	$59,940	$54,975

Property and equipment, at cost	177,395	173,089	165,825	155,002
Less accumulated depreciation	(63,115)	(57,725)	(51,896)	(45,399)
Property and equipment, net	114,280	115,364	113,929	109,603

Property under capital lease	5,239	5,589	5,899	5,936
Less accumulated amortization	(2,864)	(3,046)	(3,147)	(3,215)
Property under capital lease, net	2,375	2,543	2,752	2,721

Goodwill	18,102	19,510	20,497	20,651
Other assets and deferred charges	5,671	6,149	5,987	5,456

Total assets	$203,706	$204,751	$203,105	$193,406

LIABILITIES ANDSHAREHOLDERS EQUITY
Current liabilities:
Short-term borrowings	$1,592	$7,670	$6,805	$4,047
Accounts payable	38,410	37,415	38,080	36,608
Accrued liabilities	19,152	18,793	18,808	18,154
Accrued income taxes	1,021	966	2,211	1,164
Long-term debt due within one year	4,810	4,103	5,587	1,975
Obligations under capital leases duewithin one year	287	309	327	326
Current liabilities of discontinuedoperations	0	89	0	26

Total currentliabilities	65,272	69,345	71,818	62,300

Long-term debt	41,086	41,771	38,394	44,070
Long-term obligations under capitalleases	2,606	2,788	3,023	3,009
Deferred income taxes and other	8,805	8,017	7,613	7,862
Redeemable non-controlling interest	0	1,491	519	404
Commitments and contingencies	0	0	0	0

Shareholders equity:
Common stock	323	323	332	342
Capital in excess of par value	2,462	2,362	3,620	3,692
Retained earnings	85,777	76,566	72,978	68,691
Accumulated other comprehensive income(loss)	(7,168)	(2,996)	(587)	(1,410)

Total Walmart shareholders' equity	81,394	76,255	76,343	71,315

Noncontrolling interest	4,543	5,084	5,395	4,446

Total equity	85,937	81,339	81,738	75,761

Total liabilities and shareholdersequity	$203,706	$204,751	$203,105	$193,406

WAL MART STORESINC
10-K

Income Statement

(Amounts in millions except per sharedata)
Fiscal Year Ended January 31,	2015	2014	2013	2012
Revenues:
Net sales	$482,229	$473,076	#######	$443,416
Membership and other income	3,422	3,218	3,047	3,093

	485,651	476,294	468,651	446,509
Costs and expenses:
Cost of sales	365,086	358,069	352,297	334,993
Operating, selling, general andadministrative expenses	93,418	91,353	88,629	85,025

Operating income	27,147	26,872	27,725	26,491

Interest:
Debt	2,161	2,072	1,977	2,034
Capital leases	300	263	272	286
Interest expense	2,461	2,335	2,249	2,320
Interest income	(113)	(119)	(186)	(161)

Interest, net	2,348	2,216	2,063	2,159

Income from continuing operations beforeincome taxes	24,799	24,656	25,662	24,332

Provision for income taxes:
Current	8,504	8,619	7,976	6,722
Deferred	(519)	(514)	(18)	1,202

Total provision for income taxes	7,985	8,105	7,958	7,924

Income from continuing operations	16,814	16,551	17,704	16,408
Income (Loss) from discontinuedoperations, net of tax	285	144	52	(21)

Consolidated net income	17,099	16,695	17,756	16,387

Consolidated net income attributable tononcontrolling interest	(736)	(673)	(757)	(688)

Consolidated net incomeattributable to Walmart	$16,363	$16,022	$16,999	$15,699

Net income per common share:
Basic income per common share fromcontinuing operations to Walmart	$5.01	$4.87	$5.03	$4.55
Basic income (loss) per common share fromdiscontinued operations	$0.06	$0.03	$0.01	($0.01)

Basic net income per common shareattributable to Walmart	$5.07	$4.90	$5.04	$4.54

Diluted income per common share fromcontinuing operations to Walmart	$4.99	$4.85	$5.01	$4.53
Diluted income (loss) per common sharefrom discontinued operations	$0.06	$0.03	$0.01	($0.01)

Diluted net income per common share	$5.05	$4.88	$5.02	$4.52

Weighted-average number of commonshares:
Basic	3,230	3,269	3,374	3,460
Diluted	3,243	3,283	3,389	3,474
Dividends declared per common share	$1.92	$1.88	$1.59	$1.46

Fiscal Year Ended	1/31/2015	1/31/2014	1/31/2013	1/31/2012
Adjusted Closing Price	$83.94	$71.97	$65.79	$56.32
Common Shares Outstanding (millions)	3,228	3,233	3,314	3,418

ACC 514 Study Guide - Finance Lease, Cash Flow, Accrual

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