Walmart PDF

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1. Calculate accounts receivable(net) turnover rate using net sales for the year ended January 31, 2021. Answer: Net turnover ratio of receivables = net sales revenue / average net receivable Net sales revenue 555,233 Beginning net receivables 6,516 Ending net receivables 6,284 Average net receivables = (Beginning net receivables + ending net receivables)/2 = (6516+6284)/2 = 6,400 Net turnover ratio of receivables = net sales revenue / average net receivables Net turnover ratio of receivables

555,233/6400 = 86.76 86.76 times

2. Calculate the number of days net sales in accounts receivable(net) at January 31, 2021. Answer: The number of days net sales in accounts receivable = (365/accounts receivable turnover rate) Receivables net turnover ratio (365/accounts receivable turnover) 365/86.76 The number of days net sales in accounts receivable

86.76

4.21

3. Compute the inventory turnover rate for the year ended January 31, 2021. Answer:

Inventory turnover rate = Cost of goods sold / Average inventory Cost of goods sold Opening inventory Closing inventory

420,315 44,949 44,435

Average inventory = (Opening inventory + closing inventory)/2

(44949+44435)/2 = 44,692

Inventory turn over rate Inventory turnover rate

420,315/44,692 9.40 times

4. Compute the number of days sales in inventory at January 31, 2021. Answer: Number of days sales in inventory = 365/ inventory turnover rate Inventory turnover rate (365/inventory turnover rate) 365/9.40 The number of days sales in inventory

9.40

38.8 days

5. Compute the gross margin percentage on goods sold for the year ended January 31, 2021 and January 31, 2020. Did gross margin percentage Increase or decrease in 2021 compared to 2020? Answer: Gross Margin percentage = (Net sales – Cost of goods)/Net sales * 100% Net sales 555,233 Cost of goods sold 420,315 Gross Margin percentage (Jan 31, 2021) (555,233 – 420,315)/555,233 = 24.3% Gross Margin percentage = (Net sales – Cost of goods)/Net sales * 100% Net sales 519,926 Cost of goods sold 394,605 Gross Margin percentage (Jan 31, 2020) (519,926 – 394,605)/ 519,926 = 24.1% The Gross margin of 2021 increased marginally by 0.2% over 2020.

6. Compute the property and equipment(net) turnover rate based on net sales for the year ended January 31, 2021. Answer: Property and Equipment(net) turnover ratio = Net Sales/ total property equipment net accumulated depreciation Net sales 555,233 Property and equipment net accumulated depreciation

92,201

(Net sales/property and equipment(net))

555,233/92,201

Property and equipment turnover rate

$ 6.02

7. Calculate the current ratio at January 31, 2021 and January 313, 2020. Did liquidity increase or decrease in 2021 compared to 2020? Answer:

Current ratio = current assets/ current liabilities Current assets 90,067 Current liabilities 92,645 (Current assets/current liabilities) 90,067/92,645 = 0.9721 Current ratio (Jan31, 2021) 0.97 Current ratio = current assets/ current liabilities Current assets 61,806 Current liabilities 77,790 (Current assets/current liabilities) 61,806/77,790 = 0.7945 Current ratio (Jan31, 2020) 0.79

8. Calculate the debt-to-equity ratio on January 31, 2020. Answer:

Debt to equity ratio = Total liability / total shareholder’s equity ($92,645 + $41,194 + $12,909 + $3,847 + $14,370) = 164,965 Total liability Total shareholders' equity 87531 (Total liabilities/total shareholders' equity) 164,965/87,531 = 1.88 Debt to equity ratio 1.88

9. Did consolidated net income attributable to Walmart increase or decrease in 2021 compared to 2020? List three major factors in 2021 that affected the company’s net income compared to the year ended January 31, 2020.

Answer: Walmart's consolidated net income declined by $1,371 in 2021 compared to 2020. Three major factors influenced the company's net income in 2021 as compared to 2020: 1. Financial commitments, capital leases, and financing liabilities are all on the rise. 2. Higher sales costs, maybe as a result of increased domestic production caused by the covid epidemic. 3. Selling expenses have increased, as have operational goals. Increased expenses in 2021 are important since they were not accompanied by an increase in net sales, resulting in decreased net revenues. 10. Explain if the cash and cash equivalents and restricted cash balance at January 31, 2021 increased or decreased from January 31, 2020. Explain why, based on the cash flow statement, the change in cash position in the 2021 fiscal year occurred. Answer: The cash and cash equivalents, as well as the restricted cash balance, were higher on January 31, 2021, than they were on January 31, 2020. This increase can be attributed to the fact that on January 31, 2021, the accounts payable and accumulated obligations were higher than on January 31, 2020. Additionally, beneficial currency rates, an increase in depreciation and amortisation, also contributed to the increase....