Question

Financial Statement Analysis Project

Part 1 Select a company you are interested in learning more about, then research and find the annual financial statements of the company (this will show two years worth of information). These financial statements are found as part of a bigger report called the 10-K (hint: do a search for the company name 10K). Submit a copy of the balance sheet and income statement.

Part 2 Now that you have the balance sheet and income statement for the company you chose, use those financial statements to compute the following ratios and answer the following analysis question:

Compute for 2 years (the most recent year and year before):Current Ratio; Debt to Assets Ratio; Gross profit rate; Profit Margin

Compute just for the most recent year: Inventory Turnover; Days in Inventory

Show your work for the calculations

Analysis: Describe in ONE paragraph what these ratios tell you about the liquidity, profitability, and solvency of your company

Walmart Inc.
Consolidated Statements of Income
Fiscal Years Ended January 31,
(Amounts in millions, except per share data) 2018 2017   

	2018	2017
Revenues: Net sales	$495,761	481,317
Membership and other income	4,582	4,556
otal revenues	500,343	485,573
Costs and expenses: Cost of sales	373,396	361,256
Operating, selling, general and administrative expenses	106,510	101,853
Operating income	20,437	22,764
Interest: Debt	1,978	2,044
Capital lease and financing obligations	352	323
Interest income	(152)	(100)
Loss on extinguishment of debt	3,136	0
Income before income taxes	15,123	20,497
Provision for income taxes	4,600	6,204
Consolidated net income	10,523	14,293
Consolidated net income attributable to noncontrolling interest	(661)	(650)
Consolidated net income attributable to Walmart	9,862	13,643
Net income per common share:
Basic net income per common share attributable to Walmart	3.29	4.40
Diluted net income per common share attributable to Walmart	3.28	4.38
Weighted-average common shares outstanding:
Basic	2,995	3,101
Diluted	3,010	3,112
Dividends declared per common share	2.04	2

Walmart Inc.
Consolidated Balance Sheets

ASSETS
Current assets:
Cash and cash equivalents	6,756	6,867
Receivables, net	5,614	5,835
Inventories	43,783	43,046
Prepaid expenses and other	3,511	1,941
Total current assets	59,664	57,689
Property and equipment:	185,154	179,492
Less accumulated depreciation	(77,479)	(71,782)
Property and equipment, net	107,675	107,710
Property under capital lease and financing obligations	12,703	11,637
Less accumulated amortization	(5,560)	(5,169)
Property under capital lease and financing obligations, net	7,143	6,468
Goodwill	18,242	17,037
Other assets and deferred charges	11,798	9,921
Total assets	204,522	198,825
LIABILITIES AND EQUITY Current liabilities:
Short-term borrowings	5,257	1,099
Accounts payable	46,092	41,433
Accrued liabilities	22,122	20,654
Accrued income taxes	645	921
Long-term debt due within one year	3,738	2,256
Capital lease and financing obligations due within one year	667	565
Total current liabilities	78,521	66,928
Long-term debt	30,045	36,015
Long-term capital lease and financing obligations	6,780	6,003
Deferred income taxes and othe	8,354	9,344
Common stock	295	305
Capital in excess of par value	2,648	2,371

Retained earnings 85,107 89,354
Accumulated other comprehensive loss (10,181) (14232)
Total Walmart shareholders' equity 77,869 77,798
Noncontrolling interest 2,953 2,737
Total equity 80,822    80,535
Total liabilities and equity $ 204,522 $ 198,825

Answer 1