Integrative Case Study 11 WalMart Financial Statements Concepts Analysis Walmart is a very large chain of retail stores selling consumer goods As it states in its Form 10K for fiscal 2020 Walmart Inc Walmart the Company or we helps people around the world save money and live better anytime and anywhere by providing the opportunity to shop in retail stores and through eCommerce Through innovation we strive to continuously improve a customercentric experience that seamlessly integrates our eCommerce and retail stores in an omnichannel offering that saves time for our customers Each week we serve over 265 million customers who visit approximately 11500 stores and numerous eCommerce websites under 56 banners in 27 countries Our strategy is to make every day easier for busy families operate with discipline sharpen our culture and become digital and make trust a competitive advantage Making life easier for busy families includes our commitment to price leadership which has been and will remain a cornerstone of our business as well as increasing convenience to save our customers time By leading on price we earn the trust of our customers every day by providing a broad assortment of quality merchandise and services at everyday low prices EDLP EDLP is our pricing philosophy under which we price items at a low price every day so our customers trust that our prices will not change under frequent promotional activity Everyday low cost EDLC is our commitment to control expenses so our cost savings can be passed along to our customers Our operations comprise three reportable segments Walmart US Walmart International and Sams Club Our fiscal year ends on January 31 for our United States US and Canadian operations We consolidate all other operations generally using a onemonth lag and on a calendar year basis For more detailed discussion of Walmarts stores products customers and business model visit the companys website wwwcorporatewalmartcom Financial Statements Please access the exhibits by clicking the link provided at the end of the assignment Exhibit 119 presents comparative balance sheets Exhibit 120 presents comparative income statements Exhibit 121 presents statements of comprehensive income and Exhibit 122 presents comparative statements of cash flows for Walmart for the three fiscal years ending January 31 2019 2020 and 2021 Because Walmarts fiscal year end occurs at the end of January we refer to the calendar years ended January 31 2019 2020 and 2021 as fiscal years 2018 2019 and 2020 respectively because 1112 of the months falls in these latter years Firms vary in their practice of referring to their own fiscal year based on this convention or the calendar year in which the year end falls However from an analysts perspective it is helpful to reference fiscal years consistently across companies for example because it is more appropriate to compare say Walmarts 2020 results as we reference to a firm with a December 31 2020 fiscal year end Walmart prepares its financial statements in accordance with US GAAP For more detail on Walmart financial statements or to download the fiscal 2020 Form 10K you can visit Walmarts investor relations page stockwalmartcominvestorsdefaultaspx Required Respond to the following questions relating to Walmart Industry and Strategy Analysis Apply Porters five forces framework to the retail industry How would you characterize the strategy of Walmart How does Walmart create value for its customers What critical risk and success factors must Walmart manage Balance Sheet Describe how cash differs from cash equivalents What are Walmarts two largest assets on the balance sheet in dollar amounts How do these assets reflect Walmarts strategy Walmart reports accounts receivable net of an allowance for uncollectible accounts Why Identify the events or transactions that cause accounts receivable to increase and decrease Also identify the events or transactions that cause the allowance account to increase and decrease How does accumulated depreciation on the balance sheet differ from depreciation expense on the income statement What is Walmarts largest current liability in dollar amount What does it represent What is Walmarts largest liability in dollar amount In what types of assets did Walmart likely invest this financing What does Walmart report in accumulated other comprehensive income loss What does this amount represent When if ever will these gains and losses appear in net income Income Statement What type of transaction gives rise to the primary source of Walmarts revenues At the end of each fiscal year what does Walmart have to estimate to measure total net revenues for the fiscal year What types of expenses does Walmart likely include in 1 cost of goods sold and 2 selling general and administrative expenses Walmart reports interest expense that is much larger than interest income Why Statement of Cash Flows Why does net income differ from