Walmart Stores, Inc. is the world's largest retailer. A large portion of the premises that the company
Question:
Walmart Stores, Inc. is the world's largest retailer. A large portion of the premises that the company occupies are leased. Its financial statements and disclosure notes revealed the following information:
Balance Sheet
($ in millions)
Required:
1. Discuss some possible reasons why Walmart leases rather than purchases most of its premises.
2. The net asset "property under finance lease" has a 2016 balance of $6,345 million ($11,096 − 4,751). Liabilities for finance leases total $6,367 ($551 + 5,816). Why do the asset and liability amounts differ?
3. Prepare a 2016 summary entry to record Walmart's lease payments, which were $600 million.
4. What is the approximate average interest rate on Walmart's finance leases?
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Step by Step Answer:
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas