Question
In: Accounting
The comparative cash flow statements from Sears and Wal-Mart are presented above. Amounts presented are in...
The comparative cash flow statements from Sears and Wal-Mart are presented above. Amounts presented are in millions. Review both statements considering what you've learned in this chapter about the cash flow statement.
Answer the following questions:
- When analyzing a company's cash flow statement, which section of the statement (operating, investing or financing) do you believe is the best predictor of a company's future profitability? Why?
- Which company do you believe is healthier based on the cash flow statements presented? Provide at least two specific examples from the statements.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
3. Presented below are condensed financial statements adapted from Target and Wal-Mart ($ in millions, except...
3. Presented below are condensed financial statements adapted
from Target and Wal-Mart ($ in millions, except per share
amounts).
Balance Sheets
($ in millions, except per share data)
Target
Wal-Mart
Assets:
Cash and cash equivalents
$
2,643
$
6,756
Accounts receivable (net)
416
5,614
Inventories
8,657
43,783
Other current assets
848
3,511
Current assets
12,564
59,664
Property, plant, and equipment (net)
25,018
107,675
Intangibles and other assets
1,417
37,183
Total assets
$
38,999
$
204,522
Liabilities and Shareholders' Equity:
Accounts...
What has Wal-Mart done well (and differently) than other companies like Target, K-Mart, Sears?
What has Wal-Mart done well (and differently) than other
companies like Target, K-Mart, Sears?
Suppose selected financial data of Target and Wal-Mart for 2017 are presented here (in millions).
Problem 13-5ASuppose selected financial data of Target and Wal-Mart for 2017 are presented here (in
millions).TargetCorporationWal-MartStores, Inc.Income Statement Data for YearNet sales$65,900$409,000Cost of goods sold45,000303,000Selling and administrative expenses15,10076,000Interest expense6502,100Other income (expense)(95)(400)Income tax expense1,3006,700Net income$ 3,755$ 20,800Balance Sheet Data(End of Year)Current assets$16,000$49,000Noncurrent assets25,700123,000Total assets$41,700$172,000Current liabilities$11,000$56,000Long-term debt17,30045,000Total stockholders’ equity13,40071,000Total liabilities and stockholders’ equity$41,700$172,000Beginning-of-Year BalancesTotal assets$45,000$163,000Total stockholders’ equity12,50066,000Current liabilities10,00058,000Total liabilities32,50097,000Other DataAverage net accounts receivable$7,700$3,800Average inventory7,20033,600Net cash provided by operating activities5,60026,200Capital expenditures1,70011,500Dividends4603,900(a) For each company, compute the following
ratios. (Round all answers to 2 decimal...
Suppose selected financial data of Target and Wal-Mart for 2017 are presented here (in millions).
Suppose selected financial data of Target and Wal-Mart for 2017 are presented here (in millions). Income Statement Data for Year
Net sales $6,900 $417,000
cost ot goods sold 44,000 38,000
Selling and administratv
epenses 14400 3,000
Interest...
Selected financial data of two competitors, Target and Wal-Mart, are presented here. (All dollars are in...
Selected financial data of two competitors, Target and Wal-Mart, are presented here. (All dollars are in millions.) Suppose the data were taken from the 2022 financial statements of each company. Target Wal-Mart (1/31/22) (1/31/22) Income Statement Data for ...
Suppose selected financial data of Target and Wal-Mart for 2020 are presented here (in millions). Target...
Suppose selected financial data of Target and Wal-Mart for 2020 are presented here (in millions). Income Statement Data for YearTarget CorporationWal-Mart Stores, Inc.Net sales$65,357$408,214Cost of goods sold45,583304,657Selling and administrative expenses15,10179,607Interest expense7072,065Other income (expense)(94)(411)Income tax expense1,3847,139Net income$2,488$14,335Balance Sheet Data (End ofYear)Current assets$18,424$48,331Noncurrent assets26,109122,375Total assets$44,533$170,706Current liabilities$11,327$55,561Long-term debt17,85944,089Total stockholders' equity15,34771,056(b) Compare the liquidity, solvency, and profitability of the two companies.
Selected hypothetical financial data of Targetand Wal-Mart for 2022 are presented here (inmillions).Target...
Selected hypothetical financial data of Targetand Wal-Mart for 2022 are presented here (in
millions).TargetCorporationWal-MartStores, Inc.Income Statement Data for YearNet sales$66,400$414,000Cost of goods sold45,000302,000Selling and administrative expenses15,50081,000Interest expense6501,900Other income (expense)(80)(400)Income tax expense1,4007,300Net income$ 3,770$ 21,400Balance Sheet Data(End of Year)Current assets$17,000$47,000Noncurrent assets26,700120,000Total assets$43,700$167,000Current liabilities$11,000$56,000Long-term debt16,80045,000Total stockholders’ equity15,90066,000Total liabilities and stockholders’ equity$43,700$167,000Beginning-of-Year BalancesTotal assets$45,000$164,000Total stockholders’ equity13,30064,000Current liabilities10,50058,000Total liabilities31,700100,000Other DataAverage net accounts receivable$7,500$3,900Average inventory7,00033,600Net cash provided by operating activities5,50027,400Capital expenditures1,80011,800Dividends5004,500For each company, compute the following ratios. (Round
current ratio answers to 2 decimal places,...
Selected financial data of two competitors, Target and Wal-Mart, are presented here. (All dollars are in...
Selected financial data of two competitors, Target and Wal-Mart, are presented here. (All dollars are in millions.) Suppose the data were taken from the 2022 financial statements of each company. Target (1/31/22) Wal-Mart (1/31/22) Income Statement Data for
Year
Net sales ...
Selected hypothetical financial data of Target and Wal-Mart for 2022 are presented here (in millions). Please...
Selected hypothetical financial data of Target
and Wal-Mart for 2022 are presented here (in
millions). Please show how to do the equations. Thank you.
Target
Corporation
Wal-Mart
Stores, Inc.
Income Statement Data for Year
Net sales
$66,700
$409,000
Cost of goods sold
46,000
306,000
Selling and administrative expenses
14,700
76,000
Interest expense
650
1,800
Other income (expense)
(95
)
(420
)
Income tax expense
1,400
7,200
Net income
$ 3,855
$ 17,580
Balance Sheet Data
(End of Year)
Current assets...
Selected hypothetical financial data of Target and Wal-Mart for 2022 are presented here (in millions). Net...
Selected hypothetical financial data of Target and Wal-Mart for 2022 are presented here (in millions). Target Corporation Wal-Mart stores,Inc Income Statement Datafor Year
Net sales $67.000 $413,000
Cost of goods sold ...
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