Walmart

Using the spreadsheet template do the following in teams:

1. Common size the balance sheet and P&L for 2021 and 2020. remember, to common size you take each P&L line divided by total revenue the number is a percentage like we did in class. For the balance sheet you take each asset line (i.e. cash etc) divided by total assets. For Liabs +Equity each liability/equity line divided by total liabs and equity.

2. Calculate the ratios that are in the spreadsheet. Make sure you show the calculations in the spreadsheet else you will not get credit.

3. Compare the ratios to the industry average (IA)

4. For each ratio, using the numbers in the spreadsheet, explain why Walmart is above or below the IA. Be detailed.

5. Walmart is a corporation.

a. Can Walmart be an S Corp? yeso? explain why or why not.

b. Can Walmart be an LLC? If so what are the advantages? Disadvantages.

c. Should they stay as a C corp based on your readings vs options 5a/b?

Explain in detail why.

6. Using the information in this case:

a. Would you add Walmart to your 401K if your company allowed it?

b. Why or why not?

RATIOS ANALYSIS RATIOS ANALYSIS