3 ANSWER - ANSWER 3 When analyzing Walmart's capital structure as of January 31, 2021, to compute the percentage of capital provided by lenders, we primarily rely on the balance sheet. The balance sheet provides the necessary figures for total liabilities (debt) and equity, which are essential for determining the percentage of debt in the capital structure. While the income statement is not directly used in this calculation, it offers valuable insights into the company's profitability, which can influence the assessment of solvency risk. Additionally, Notes 6 and 7 in the financial statements typically provide detailed information about specific liabilities or equity components, such as the terms of debt agreements or details about equity instruments. These notes can clarify any special conditions or adjustments that might be necessary for an accurate calculation. In this analysis, the balance sheet data was used to calculate the total debt and equity, resulting in a determination that approximately 41.95% of Walmart's capital was provided by lenders. If Notes 6 and 7 contain specific adjustments or additional liabilities, those would need to be incorporated into the total debt calculation to ensure precision. This comprehensive approach helps analysts assess solvency risk and estimate the weighted average cost of capital, which are crucial for financial analysis and valuation models