What is the net income for the current fiscal year? Is it up or down from the prior year? Why would this information be important to investors? •The net income of the company for the current fiscal year is $26,872 million. This year net income has decreased from last year (2013) net income of $27,725 million. The continuous increase in prior years shows the profitability in WalMart. The trend of increase in net income can be seen as below:
Year Operating Income
Year EPS Dividend per Share
2010 3.72 1.09
2012 4.53 1.46
2013 5.01 1.59
2014 4.85 1.88
This information is very useful for the investors. Any investor will like to invest in WalMart because it is growing and earning profits. When someone invests in a company they are looking for the return for their investment, therefore they have conducted proper research to make sure they will in fact earn profit. What is the ending balance in stockholders’ equity? Why would a labor union potentially be interested in this information?
•The stockholder’s equity is the amount invested by the stockholders and the retained earnings belong to the stockholders. The present stockholder’s equity is $76,343 million. There is continuous increase in stockholder’s equity. Increase in the stockholder’s equity of WalMart is as follows: Year Stockholder’s Equity
Labor unions are most interested in financial statements and specifically net income and stockholders’ equity. They are interested in stockholders’ equity to assess the security of their wages and increase in wage payments. Copyright © 2013, 2011, 2009, 2008 by University of Phoenix. All rights reserved. Financial Statement Review ACC/561 Version 5
What is the total value of assets? Why would this information be important to a potential creditor? •The total assets of the company show the worth of the company from which the liabilities are to be paid and balance will be available to stockholders. Present total assets of WalMart are $204,751 million, which has continually increased. in the equity of WalMart are shown below:
Year Total Assets
The information provided in balance reports are used to evaluate a company’s financial performance. Another useful aspect of the reports is that managers are able to communicate with other individuals about how to properly run the company. What is the total cash flow from operation? •The Net operating cash flow has decreased from in operations to $23.26 billion from $25.59 in 2013 and $24.26 in 2012. What financial statement user would find this information most important?
•My personal favorite financial statement is the income statement because it shows both profit and loss. The income statement is broken down into two sections, operating and non-operating sections. The portion that deals directly with operating is important to investors because it discloses information about revenues that directly relate to business operations. The non- operating portion of the income statement is important because it reports irregular sales or sales that are not directly related to the business. An example of this would be selling equipment or one time purchases of sales. Copyright © 2013, 2011, 2009, 2008 by University of Phoenix. All rights reserved.
Financial Statement Review
ACC/561 Version 5
Five-Year Financial Summary. (2014). Retrieved from http://cdn.corporate.walmart.com/66/e5/9ff9a87445949173fde56316ac5f/2014-annual-report.pdf
Market Watch. The Wall Street Journal. (2014). Retrieved from http://www.marketwatch.com/investing/stock/wmt/financials/cash-flow
Copyright © 2013, 2011, 2009, 2008 by University of Phoenix. All rights reserved.