This assignment will serve as a financial statement review of Wal-Mart’s net income statement, stockholders equity, total value of assets, and the total cash flow from operations for the fiscal year ending January 31, 2014.
Net Income 2014 The net income for 2014 was $16,022 million dollars, which was down from 2013, when Wal-Mart reported a net income of $16099 million dollars This information is important to investors because “investors (owners) use accounting information to make decisions to buy, hold, or sell stock. Creditors such as suppliers and bankers use accounting information to evaluate the risks of selling on credit or lending money” (Weygandt, Kimmel, & Kieso, 2011, Chapter 1 Introduction to financial statements). Some questions that may be answered by this information are: 1. Is Wal-Mart earning satisfactory income? 2. How does Wal-Mart compare in size and profitability with other retailers? 3. Will Wal-Mart be able to pay its debts as they come due? Stockholders’ Equity
Total Wal-Mart Stockholders’ Equity in 2013 was $5395 million which was an increase from previous year, which was $$4446 million. “Labor unions would be interested in this information, because they want to know whether the company has the ability to pay increased wages and benefits” (Weygandt, Kimmel, & Kieso, 2011, Chapter 1 Introduction to financial statements).
Total Value of Assets The total value of assets fiscal end (January 32, 2014) for Wal-Mart US was $98,745 million. Potential creditors find this information helpful in determining Creditors such as suppliers and bankers use accounting information to evaluate the risks of selling on credit or lending money. Cash Flow The net cash provided
