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Accounting Assignment Help
1.
(4
points) Where are the principal offices of Walmart located? When and where was Walmart incorporated? When did Walmart open its first supercenter?When
did Walmart begin its first eCommerce initiative? What was created by this initiative?
Answer:
2.
(3
points)As of January 31, 2020 in how many foreign countries did the Walmart
International segment operate?Walmart International operates through
wholly-owned subsidiaries in what seven countries?
Answer:
3.
(3
points) The Company’s largest “reportable segment,” Walmart U.S., has three retail
store formats. What is offered at each
of the retail store formats? What is the
average square footage of each of the retail store formats?
Answer:
4.
(5
points) What are the two types of membership that are available for the Sam’s
Club segment “warehouse clubs?” What is
the annual fee for each? How many
“Add-on Memberships” are allowed for each?
How much do “Add-on Memberships” cost for each?
Answer:
5.
(3
points) List the merchandise categories for the Sam’s
Club segment.
Answer:
6.
(3
points) How many suppliers does the Company have in its global supply
chain? As of the end of fiscal 2020, how
many employees did the company have? How
many of these were employed in the U.S.?
How many were employed internationally?
Answer:
7. (5 points) Item 1A of the Company’s Form
10-K lists 20 “Risk Factors” in four categories. What are the four categories of risk? Choose any two of the 20 identified “Risk
Factors” and write a brief synopsis of each.
Choose one “Risk Factor” from two different categories.
Answer:
8.
(2
points) Item 1B. Unresolved Staff Comments is found on page 23 of the Form
10-K. Who is the “Staff” that is
referred to here?
Answer:
9.
(3
points) As of January 31, 2020, how many Supercenters were in North
Carolina? How many Discount Stores were
in Texas? How many Neighborhood Markets
and other small formats were in Ohio? How many Sam’s Clubs were in Alabama?
Answer:
10.
(3
points) How many U.S. distribution facilities are leased? How many are owned? How many international
distribution facilities are owned? How
many are leased?
Answer:
11.
(2
points) On what exchange is Walmart common stock traded? How many common stock shareholders of record
were there as of March 18, 2020?
Answer:
12.
(4
points) On October 2017, the Board of Directors authorized a $20 billion share
repurchase program. On January 31, 2020how
much of the $20 billion remains and is authorized for future repurchase of
shares? What happens to the shares that are
repurchased as part of the program? How many shares were repurchased in each
month in the last quarter of fiscal 2020?
Answer:
13. (14 points) Using information presented in
the Five-Year Financial Summary, calculate the percentage increase/decrease in
net sales, gross profit margin (based on net sales) in dollars, operating income, dividends declared per common share, total
assets, total Walmart shareholders’ equity and total unit counts from the
fiscal year ended January 31, 2016 to the fiscal year ended January 31, 2020. (Do not include percentage increases for
interim years). Show your calculations and round your percentages to two decimal
places.
Answer:
|
|
Percentage
Increase/Decrease from January
31, 2016 to January 31, 2020 |
|
Net
sales |
|
|
Gross
profit margin (based on net sales) in dollars |
|
|
Operating
income |
|
|
Dividends
declared per common share |
|
|
Total
assets |
|
|
Total
Walmart shareholders’ equity |
|
|
Total
units |
|
14. (18 points) In the Management’s Discussion
and Analysis of Financial Condition and Results of Operations (MDA) under the
heading “Company Performance Metrics,” the Company says, “We are committed to helping customers save money and live better
through everyday low prices, supported by everyday low costs. At times,
we adjust our business strategies to maintain and strengthen our competitive
positions in the countries in which we operate. We define our financial
framework as:
·
strong, efficient growth
·
consistent operating discipline
·
strategic capital allocation
As we execute on
this financial framework, we believe our returns on capital will improve over
time.”
Comment on the three aspects of the Company’s financial framework
listed above as well as its returns on capital.
What metrics does the Company use to measure its return on capital? In your answer to this question, comment on
the three components of Walmart’s financial framework and its measures of return
on capital both for the fiscal year ended January 31, 2020
and the fiscal year ended January 31, 2019.
(Your answer to this question should be
roughly one page in length double-spaced and a 12-point font)
Answer:
15.
(3
points) Also from the MDA, what does the Company say about its change in Strategic
Capital Allocations in fiscal 2020 relative to prior years?
Answer:
Answer:
17. (2 points) Lastly from the MDA, did the
Company have any material off balance sheet arrangements as of January 31, 2020?
Answer:
18.
(4points)In
the Report of the Independent Registered Public Accounting firm, what does EY
say about Walmart’s “Adoption of ASU No. 2016-02?” What are the two “Critical Audit Matters”
identified in this report?
Answer:
19. (4 points) With whom is the independent
public accounting firm “registered”? What
criteria does Ernst & Young use in its audit of Walmart’s internal control
over financial reporting? Is there any
component of the annual report to shareholders that is designated as
“Unaudited”?
Answer:
20.
(3
points) What is the denominator used in the determination of (a) basic and (b) diluted
net income per common share attributable to Walmart for fiscal 2020?How do
these figures compare to the figures used for fiscal 2019? For fiscal 2018?
Answer:
21.
(3
points) How did the basic and diluted net income per
common share attributable to Walmart in fiscal 2020 EPS compare to the basic
and diluted net income per common share attributable to Walmart in fiscal 2019? In fiscal 2018?
Answer:
22.
(4
points) The Company presents its Consolidated Balance Sheets for the fiscal
years ending January 31, 2020 and 2019on page 52of the Form 10-K. Would you say that the balance sheets that
are presented are “classified?” Why or
why not?
Answer:
23.
(12
points) Use the Company’s Consolidated Balance Sheet as of January 31, 2020 to
complete the table below. Round your percentages to two decimal
places.
Answer:
|
|
Amount (in millions) |
% of Total Assets |
|
Current assets |
|
|
|
Property and equipment, net of
accumulated depreciation |
|
|
|
Right-of-use assets (operating and
finance leases) |
|
|
|
Goodwill and Other long-term assets |
|
|
|
Current liabilities |
|
|
|
Long-term liabilities (include long-term operating
and finance leaseobligations) |
|
|
|
Deferred income taxes and other |
|
|
|
Contributed capital |
|
|
|
Retained earnings |
|
|
|
Accumulated other comprehensive loss |
|
|
|
Noncontrolling interest |
|
|
24.
(4
points) Calculate the Company’s current ratio (rounded to four decimal places) and
its working capital as of January 31, 2020 and 2019.Show your calculations. Then
comment on whether the Company’s liquidity showed improvement at the end of
fiscal 2020relative to the end of fiscal 2019. Use the table provided below to
present answers to the first question. Answer the second question in the space
below the table. (Note: Your commentary
should be no longer than a couple of sentences.)
Answer:
|
|
Current Ratio |
Working Capital (in millions) |
|
As of January 31, 2020 |
|
|
|
As of January 31, 2019 |
|
|
Commentary:
25.
(4
points) Complete the table below to indicate the total amount of dividends declared
and the dividend amounts per share for the fiscal years ending January 31, 2018,
January 31, 2019, and January 31, 2020 respectively.In addition, what will the
dividend amount per share be for the fiscal year ending January 31, 2021?
Answer:
|
Fiscal year ending |
Total Dividends Declared |
Dividends per Share |
|
January 31, 2018 |
|
|
|
January 31, 2019 |
|
|
|
January 31, 2020 |
|
|
|
January 31, 2021 |
|
|
26.
(2
points) For the fiscal year ended January 31, 2020, didthe Company use the
direct or indirect method to determine the net cash provided by operating
activities?How do you know?
Answer:
27.
(2
points) Toward the bottom of the Consolidated Statements of Cash Flows you will
find a line item entitled “Net increase (decrease) in cash, cash equivalents
and restricted cash.” How does the Company define cash equivalents?
Answer:
28. (3 points) By its very nature, financial
reporting requires the use of estimates and assumptions. For example, you should all remember that bad
debt expense is an estimate as are the useful life and salvage value of
depreciable assets. What does the
Company say about its use of estimates in financial reporting?
Answer:
29. (2 points) What are the main sources of the
Company’s accounts receivable? As of
January 31, 2020, what amount of accounts receivable were from transactions
with customers? How about as of January
31, 2019?
Answer:
Answer:
31. (3 points) What
factors caused the change in total goodwill for the Company from January 31,
2019 to January 31, 2020? How much was
the effect of each? With what “reportable segment” was each factor attributed?
32. (5 points) Walmart
discloses the disaggregated revenue for each of its segments. For each
segment, what is the dollar amount of total net sales related to e-commerce for
fiscal 2020? For fiscal 2019?
Answer:
33. (3 points) According to information in
Walmart’s Form 10-K, who is responsible for establishing and maintaining
adequate internal control over financial reporting? Describe any changes in internal control over
financial reporting in fiscal 2020.
Answer:
Proxy Statement
Answer:
Answer:
36.
(5
points) What is the agenda or “Items of Business” for the Company’s 2020annual
shareholders’ meeting?
Answer:
37. (4 points)There were company and
shareholderproposalsthat were voted on at the Company’s 2020 annual
shareholders’ meeting. Identify each of
the proposals to be voted on and indicate whether the Board (BOD) recommended
that the shareholders vote for or against the proposal.
Answer:
38.
(8
points) Elevenindividuals were up for election to the Board of Directors. List the nominees who are considered independent
directors.Who is identified as the Lead Independent
Director? What is the term limit for the
independent directors? How does the
Company assess the “independence” of a director? In your answer, you do not need to include
the list of “Materiality Guidelines”.
Answer:
39.
(8
points) How many “Board Committees” (committees whose members are members of
the BOD) are there? Three of these committees are Governance Committees. List these committees and the chairperson of
each during fiscal 2020. Two are these
committees are Strategy Committees. List
these committees and the chairperson of each during fiscal 2020?Who are the members of the Executive Committee?
Answer:
40. (5 points) Provide a breakdown of fees paid
by the Company to its independent registered public accounting firm for
services provided in fiscal 2020 and fiscal 2019 by completing the table below.What
is included in a) “Audit-Related Fees” and b) “All Other Fees”? Answer the last two questions below the
table.
Answer:
|
Type
of fee |
Fees
paid in Fiscal 2020 |
Fees paid in Fiscal 2019 |
|
|
|
|
|
|
|
|
|
|
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|
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|
Commentary:
FORM
8-Ks
41. (5 points)On June 5, 2020 the Company filed
a Form 8-K with the SEC that announced the results of shareholders’ voting at
the Company’s 2020virtual annual shareholders’ meeting. How many of the 11 persons nominated for
election as directors were elected? List
the three other company proposals and indicate whether each was approved or
rejected. Finally, list the four
shareholder proposals and indicate whether each approved or rejected.
Answer:
42. (5
points)On November 17, 2020 the Company filed another Form 8-K with the
SEC. What was the purpose of the Form
8-K or put another way, what is discussed in this Form 8-K?
STOCK.WALMART.COM:Look in the “Corporate Governance” section
43. (4 points) Walmart’s ethical values are guided by its “beliefs”
that guide the Company’s decisions and leadership. Identify and describe each of these beliefs.
Answer:
44. (3 points) Briefly
describe the Code of Ethics
for the CEO and senior financial officers.
Answer:
45. (3 points) In its
Procedures for Complaints Related to Accounting or Audit Matters, what is included in “Accounting
Matters”? What are the
options for reporting a complaint regarding Accounting Matters?
Answer:
USA 
India