will you please help me to answer those questions from A to W.. thank you?

2:101-3: 1O 1 INTEGRATIVE CASE 1.1 Walmart The first case at the end of this chapter and numerous subsequent chapters is a series of integrative cases involving Wal-Mart Stores, Inc. (Walmart). The series of cases applies the concepts and analytical tools discussed in each chapter to Walmart's financial statements and notes. The prepara- tion of responses to the questions in these cases results in an integrated Hlustration of the six se- quential steps in financial statement analysis discussed in this chapter and throughout the book Introduction Walmart is a very large chain of retail stores selling consumer goods. As it states in its Form 10- K for fiscal 2015: Wal-Mart Stores,c. Walmart," the "Company" or "we) helps people around the world save money and live better-anytime and anywhere-in retail stores or through our e-commerce and mobile capabilities. Through innovation, we are striving to create a customer-centric experience that seamlessly integrates digital and physical shopping. Physical retall encompasses our brick and mortar presence in each market where we operate. Digital retail is comprised of our e-commerce websites and mobile commerce applications. Each week, we serve nearly 260 million customers who visit our over 11,500 stores under 63 banners in 28 countries and e-commerce websites in 11 countries. Our strategy Is to lead on price, differentiate on access, be competitive on assort- ment and deliver a great experience. Leading on price is designed to 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. Price leadership is core to who we are. Everyday low cost ("EDLC") is our commitment to control expenses so those cos sav- ings can be passed along to our customers. Our digital and physical presence provides customers access to our broad assortment anytime and anywhere. We strive to give our customers and members a great digital and physical shopping experience. For more detalled discussion of Walmart's stores, products, customers, and business model, visit the company's website: www.corporate.walmart.com. Financial Statements Exhibit 1.19 presents comparative balance sheets, Exhlbit 1.20 presents comparative Income statements, and Exhibit 121 (pages 62-63) presents comparative statements of cash flows for Walmart for the three fiscal years ending January 31, 2014, 2015, and 2016. Walmart prepares its financial statements in accordance with US, GAAP. For more detail on Walmart financial statements, or to download the fiscal 2015 Form 10-K, you can visit Walmart's investor relations page: www.stock REQUIRED Respond to the following questions relating to Walmart. UWhile more information on Walmart's business may be helpful, it is not necessary to complete this case. While information on the investor relations page may be helpful, it is not necessary to complete this case Exhibit 1.19 Wal-Mart Stores, Inc. Balance Sheets as of January 31 (amounts in millions; allow for rounding) (Integrative Case 1.1) 2014 2015 2016 Assets: Cash and cash equivalents Accounts and notes receivable-net Inventorles Prepaid expenses and other current assets Current assets of discontinued segments $ 7281 6,677 44,858 $ 9,135 6,778 45,141 5,624 44469 441 460 61,185 178,678 (60,771) 19,510 6,149 63,278 60239 Current Assets Property, plant, and equipment-at cost Accumulated depreclation Goodwill Other assets 182,634 (65,979) 18,102 5A55 188,054 71,538) 6,131 $199,581 Total Assets 520475103490 199 581 $203,490 Liabilitiles and Equities: Accounts payable Current accrued expenses Notes payable and short-term debt Current maturities of long term debt Income taxes payable Current labilities of discontinued operations 37415 38,410 $ 38,487 19,607 2,708 3,296 19,152 1,592 7,670 4412 966 89 69,345 44,559 8,017 1491 123,412 2,685 76,566 (2,996) 76,255 5,084 81,339 $204,751 1,021 65253 64,619 Current Liabilities Long-term debt obligations Deferred tax liabilities -noncurrent Redeemable noncontrolling interest 43,495 8,805 44,030 7321 Total Liabilities Common stock +Additional paid-in capital Retained earnings Accum. other comprehensive income (loss) 117.553 2,785 85,777 115,970 2,122 90,021 Total Common Shareholders' Equity 81,394 4,543 $85,937 $203,490 80,546 Noncontroliling interests Total Equity Total Liabilities and Equities 83,611 $199,581 Source: Wal-Mart Stores, Inc. Forms 10-K for the three fiscal years ended January 31, 2014, 2015, and 2016 Industry and Strategy Analysis a. Apply Porter's five forces framework to the retail industry b. 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? Exhibit i.20 Wal-Mart Stores, Inc. Income Statements for the Fiscal Years Ended January 31 amounts in millions; allow for rounding) (Integrative Case 1.1) 2014 2015 2016 $476,294485,651 358,069365,086 $118,225 $120,565 135393418 $482,130 360,984 $121,146 97,041 $26,87227147 24,105 81 Revenues Cost of goods sold Gross Profit Selling, general, and administrative expenses Operating Profit Interest income Interest expense 119 (2,335 24,656 8,105 144 16,695 2461)(2,548) 24,799 21,638 Income before Tax Income tax expense Incorne (Loss) from discontinued operations 6,558 15,080 $ 14,694 285 $ 17,099 Net Income Net income attributable to noncontrolling interests Net Income Attributable to Common Shareholders16,022 16,363 Other comprehensive Income items 1219110265 Comprehensive income 13,613 Source: Wal-Mart Stores, Inc. Forms 10-K for the three fiscal years ended January 31,2014,2015, and 2016. Exhibit 1.21 Wal-Mart Stores, Inc. Statements of Cash Flows for the Three Fiscal Years Ended January 31 (amounts in millions; allow for rounding) Integrative Case 1.1) 2014 2015 2036 Net Income Add back depreciation and amortization expenses Deferred income taxes (Increase) Decrease in accounts receivable (Increase) Decrease in inventories increase (Decrease) in accounts payable Increase (Decrease) in income taxes payable Increase (Decrease) in other current liabilities (Income) Loss from discontinued segments Other operating cash flows $ 16,69517,099 9,173 (503) (569) (1,229) 2,678 166 8,870 (279) (566) (1,667) 531 (1,224) $15,080 9,454 (672) (19) (703) 2,008 (472) (144) 938 (285) 1,410 2325728,56427389 Net Cash Flow from Operating Activities (Continued) Walmart Proceeds from sales of property, plant, and equipment Property plant, and equipment acquired Investments acquired Other investment transactions Exhibit 1.21 (Continued) 727 13,115) 570 (12,174) 635 (11.477) 167 $(12,526)$(11,125) $(10,675) 1-235 4393) (4,112) (6,294) (2,853) 2,558) $(10,789)$(15,071)$(16,122) (1,022) $ (430) 9,135 8,705 (138)479 Net Cash Flow from Investing Activitles Increase (Decrease) in short-term borrowing increase (Decrease) in long-term borrowing Share repurchases treasury stock Dividend payments Other financing activities 911 2,104 (6,683) (6,139) (982) (6,288) 1,270 (1,015) (6,185) Net Cash Flow from Financing Activities Effects of exchange rate changes on cash (442) (514) Net Change in Cash Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year S (500)1854 7.781 7,281 7281 Source: Wal-Mart Stores, Inc.Forms 10-K for the three fiscal years ended January 31, 2014, 2015, and 2016 Balance Sheet c. Describe how "cash" differs from "cash equivalents." d. What are Walmart's two largest assets on the balance sheet (in dollar amounts)? How do these assets reflect Walmart's strategy? e. 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. f. How does accumulated depreciation on the balance sheet differ from depreciation expense on the income statement? g. What is Walmart's largest current liability in dollar amount? What does it represent? h. What is Walmart's largest liability in dollar amount? In what types of assets did Walmart likely invest this financing? What does Walmart report in accumulated other comprehenslve income (loss)? What does this amount represent? When, if ever, will these gains and losses appear in net income? L. Income Statement J. What type of transaction gives rise to the primary source of Walmart's revenues? At the end of each fiscal year, what does Walmart have to estimate to measure total (net) reve- nues for the fiscal year? k. What types of expenses does Walmart likely include in (1) cost of goods sold and (2) sell- ing, general, and administrative expenses? I. Walmart reports interest expense that is much larger than interest income. Why? Statement of Cash Flows m. Why does net income differ from the amount of cash flow from operating activities? n. Why does Walmart add the amount of depreclation and amortization expense to net income when computing cash flow from operating activities? 4 o. Why does Walmart show increases in inventory as subtractions when computing cash P. Why does Walmart show increases in accounts payable as additions when computing q. What was the single largest use of cash by Walmart during this three-year period? How r. What was Walmart's single largest use of cash for financing activities during this three- flow from operations? cash flow from operations? does that use of cash reflect Walmart's business strategy? year period? What does that imply about Walmart's financlal position and performance? Relations between Financial Statements s. Prepare an analysis that explains the change in retained eamings from $85,777 million at the end of fiscal 2014 to $90,021 milion at the end of fiscal 2015. Do not be alarmed if your rec- oncliation is dose to, but does not exactly equal, the $90,021 million ending balance. Interpreting Financial Statement Relations Exhibit 1.22 presents common-size and percentage change balance sheets and Exhibit 123 presents common-size and percentage change income statements for Walmart for fiscal years ended January 31, 2014, 2015, and 2106. The percentage change statements report the annual percentage change in each account from fiscal 2013 to 2014, and from fiscal 2014 to 2015. Exhibit 1.22 Wal-Mart Stores, Inc Common-Size and Percentage Change Balance Sheets as of January 31 (allow for rounding) (Integrative Case 1.1) Gommon Size Percentage Change 2014 2015 2016 2015 2016 Cash and cash equivalents Accounts and notes receivable-net Inventories Prepaid expenses and other current assets Current assets of discontinued segments Current Assets Property, plant, and equipment -at cost Accumulated depreclation 3.6% 33% 21.9% 0.9% 0.2% 29,9% 87.3% (29.7%) 9.5% 3.0% 100.0% 4.5% 33% 22.2% 1.1% 0.0% 31.1% 89.8% (32.4%) 8.9% 27% 100.0% 4.4% 28% 22.3% 0.7% 0.0% 30.2% 94.2% (35.8%) 8.4% 3.1% 100.0% 25.5% 15% 0.6% 15.5% (100.096) 34% 2.2% 86% (72%) (113%) (0.6%) (4.7%) (17.0%) (15%) (352%) na (48%) 30% 84% (78%) 12.4% (19%) Other assets Total Assets Liabilities and Equities: Accounts payable Current accrued expenses Notes payable and short-term debt Current maturitles of long-term debt 18.3% 92% 3.7% 2.2% 18.9% 9.4% 0.3% 2.5% 19.3% 9.8% 1.4% 1.7% 2.7% 1.9% (792%) 15.1% 0.2% 2.4% 70.1% (35.1%) Continued) Walmart Exhibit 1.22 (continued) Income taxes payable Current liabilities of discontinued operations 0.5% 0.0% 33.9% 21.8% 3.9% 0.7% 60.3% 1.3% 37.4% (15%) 37.2% 25% 39.7% 100.0% 0.5% 0.0% 32.1% 21.4% 43% 0.0% 57.8% 1.4% 42.2% (3.5%) 40.0% 2.2% 42.2% 100.0% 0.3% 0.0% 32.4% 22.1% 3.7% 0.0% 58.1% 1.1% 45.1% (58%) 40.4% 1596 41.9% 100.0% 5.7% (100.0%) (5.996) (2.4%) 9.3% (100.0%) (4.796) 3.7% 12.0% 139.3% 6.7% (10.6%) 5.7% (0.6%) (49.0%) na (1.096) 12% (16.9%) 0.0% (1.396) (23.8%) 4.9% 61.8% (1.0%) (32.5%) (2.7%) (1996) Current Liabilities Long-term debt obligations Deferred tax liabilities-noncurrent Redeemable noncontrolling interest Total Liabilities Common stock+ Additional paid-in capital Retained earnings Accum. other comprehensive income (loss) Total Common Shareholders' Equity Noncontroling interests Total Equity Total Liabilities and Equities Source: Wal-Mart Stores, Irc. Forms 10-K for the three fiscal years ended January 31.2014,2015, and 2016 Exhibit 1.23 Wal-Mart Stores, Inc Common-Size and Percentage Change Income Statements for the Three Fiscal Years Ended January 31 allow for rounding) integrative Case 1.1) Common Size Percentage Change 2014 20 2016 2015 2016 Revenues Cost of goods sold 100096 (75296) 24.8% (19.2%) 5.6% 0.0% 0.596) 5.2% (1.7%) 0.0% 3.5% 100096 (75296) 24.8% (19.2%) 5.6% 0.0% (0.596) 5.1% (1.6%) 0.1% 3.5% 100096 (74.9%) 25.1% (20.1%) 5.0% 0.0% (0.5%) 4.5% (1.4%) 0.0% 3.1% 2.0% 2.0% 2.0% 23% 1.0% (5.0%) 54% 0.6% (1.5%) 97.9% 2.4% (0.7%) (1.1%) 0.5% 3.9% (11.2%) (28.3%) 3.5% (12.7%) (17.996) (100.0%) (11.8%) Gross Profit Selling, general and administrative expenses Operating Profit Interest income interest expense Income before Tax Income tax expense Income (Loss) from discontinued operations Net income attributable to noncontrolling Net Income Attributable to Common Other comprehensive income items Net Income interests Shareholders (0.1%) (0296) (0.1%) 9.496 (47.6%) 3.4% (0.5%) 2.9% 3.4% (0.996) 2.5% 3.0% (0.996) 2.1% 2.1% 73.2% (10.4%) (10.2%) 6.2% (15.8%) Comprehensive Income Source: Wal-Mart Stores, Inc. Forms 10-K for the three fiscal years ended January 31, 2014, 2015, and 2016. t. The percentage changes in prepaid expenses and other current assets jumped up 165% in fiscal 2014 and then fell by 35.2% in fiscal 2015, Did the changes in the dolar amounts of this account have a huge impact on total assets (see Exhibit 1.22)? Explain. to the proportion of shareholders' equity? What does this imply about changes in Wal- u. During this three-year period, how did the proportion of total liabilities change relative mart's leverage? 20157 Identify the most important reasons for this change. relate to the company's strategy? v. How did net income as a percentage of total revenues change from fiscal 2013 to fiscal W. Does Walmart generate high or low profit margins? How do Walmart's proft margins