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    Wal-Mart Stores, Inc

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    Walmart's 2014 balance sheet lists its major asset classifications as current assets, property and equipment, property under capital leases, goodwill, and other assets and deferred charges. Walmart reported total assets of $243 billion in 2014, with current assets of $66 billion, current liabilities of $90 billion, and total equity of $81 billion. Walmart's largest current asset is inventories ($46 billion) and largest current liability is accounts payable ($35 billion). Walmart uses the LIFO method for inventory valuation in its US segment and primarily FIFO for its international segment. It defines cash equivalents as investments with a maturity of three months or less when purchased.

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    Wal-Mart Stores, Inc

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    Vika
    15 views3 pages
    Walmart's 2014 balance sheet lists its major asset classifications as current assets, property and equipment, property under capital leases, goodwill, and other assets and deferred charges. Walmart reported total assets of $243 billion in 2014, with current assets of $66 billion, current liabilities of $90 billion, and total equity of $81 billion. Walmart's largest current asset is inventories ($46 billion) and largest current liability is accounts payable ($35 billion). Walmart uses the LIFO method for inventory valuation in its US segment and primarily FIFO for its international segment. It defines cash equivalents as investments with a maturity of three months or less when purchased.

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    problem 7-4 Statement

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    WalMArt

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    Walmart's 2014 balance sheet lists its major asset classifications as current assets, property and equipment, property under capital leases, goodwill, and other assets and deferred charges. Walmart reported total assets of $243 billion in 2014, with current assets of $66 billion, current liabilities of $90 billion, and total equity of $81 billion. Walmart's largest current asset is inventories ($46 billion) and largest current liability is accounts payable ($35 billion). Walmart uses the LIFO method for inventory valuation in its US segment and primarily FIFO for its international segment. It defines cash equivalents as investments with a maturity of three months or less when purchased.

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    © All Rights Reserved
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    15 views3 pages

    Wal-Mart Stores, Inc

    Uploaded by

    Vika
    Walmart's 2014 balance sheet lists its major asset classifications as current assets, property and equipment, property under capital leases, goodwill, and other assets and deferred charges. Walmart reported total assets of $243 billion in 2014, with current assets of $66 billion, current liabilities of $90 billion, and total equity of $81 billion. Walmart's largest current asset is inventories ($46 billion) and largest current liability is accounts payable ($35 billion). Walmart uses the LIFO method for inventory valuation in its US segment and primarily FIFO for its international segment. It defines cash equivalents as investments with a maturity of three months or less when purchased.

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    The balance sheet and disclosure of significant accounting policies taken from the 2014 annual report

    of Wal-Mart Stores, Inc., appear below. Use this information to answer the following questions:
    1.

    What are the asset classifications contained in Walmart's balance sheet?


    Current assets
    Property and equipment
    Property under capital leases
    Goodwill
    Other assets and deferred charges

    2.

    What amounts did Walmart report for the following items for 2014:
    a.Total assets
    b.Current assets
    c. Current liabilities
    d.Total equity
    e.Retained earnings
    f. Inventories

    3.

    What is Walmart's largest current asset? What is its largest current liability?

    4.

    Compute Walmart's current ratio for 2014.

    5.

    Identify the following items:


    a.The company's inventory valuation method.
    b.The definition of cash equivalents.

    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


    WAL-MART STORES, INC.
    1 Summary of Significant Accounting Policies (in part)
    Cash and Cash Equivalents

    The Company considers investments with a maturity of three months or less when purchased to be cash
    equivalents.
    Inventories
    The Company values inventories at the lower of cost or market as determined primarily by the retail
    method of accounting, using the last-in, first-out (LIFO) method for substantially all of the Walmart U.S.
    segment's merchandise inventories. Inventories for the Walmart International operations are primarily
    valued by the retail method of accounting, using the first-in, first-out (FIFO) method. At January 31, 2014
    and 2013, our inventories valued at LIFO approximate those inventories as if they were valued at FIFO.
    Revenue Recognition
    The Company recognizes sales revenue net of sales taxes and estimated sales returns at the time it sells
    merchandise to the customer. Customer purchases of shopping cards are not recognized as revenue until
    the card is redeemed and the customer purchases merchandise by using the shopping card. The
    Company also recognizes revenue from service transactions at the time the service is performed.
    Generally, revenue from services is classified as a component of net sales on our consolidated
    statements of income.

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