Description
I’m working on a accounting writing question and need the explanation and answer to help me learn.
This assessment addresses the following course objective(s):
CO4 – Analyze balance sheet equity entries.Throughout this course you have been researching one of the following companies:
Target (TGT)Links to an external site.
Walmart (WMT)Links to an external site.
Walgreens (WBA)Links to an external site.
CVS (CVS)Links to an external site.
Kroger (KR)Links to an external site.
You have been sharing research you have found in the weekly discussions and compiled a list of resources supporting your research and opinion.
In Unit 4, you submitted a reference list to support your research into the financial health of your company.
In Unit 5 you submitted the ratio analysis file for review and feedback, after compiling three years of data for your company.
In Unit 6 you submitted the FINAL ratio analysis after incorporating feedback provided.
You are now ready to prepare to complete a financial analysis of the company that you have been following this term.
In this assignment, you will complete a 4-5 page paper discussing the company’s financial health through a discussion of the ratio calculations. The ratios should be the basis for your discussion looking at the trends determining which areas are improving and eroding. Be sure to make a final conclusion as to your opinion of the overall health of your company. Your paper should be supported with at least four outside references beyond the textbook, Hoovers and Yahoo Finance.
PAPER OUTLINE
Introduction
Provide background about the company
Discussion of the company’s liquidity ratios
Discuss the company management ratios
Discuss the company’s debt ratios
Discuss the company’s profitability ratios
Discuss the company’s market ratios
Discuss the overall assessment of the financial health of the company
Conclusion
Unformatted Attachment Preview
Consolidated Statements of Income – USD ($) shares in Millions, $ in Millions
Revenues:
Net sales
Membership and other income
Total revenues
Costs and expenses:
Cost of sales
Operating, selling, general and administrative expenses
Operating income
Interest:
Debt
Finance lease
Interest income
Interest, net
Loss on extinguishment of debt
Other (gains) and losses
Income before income taxes
Provision for income taxes
Consolidated net income
Consolidated net (income) loss attributable to noncontrolling interest
Consolidated net income attributable to Walmart
Net income per common share:
Basic net income per common share attributable to Walmart (in USD per share)
Diluted net income per common share attributable to Walmart (in USD per share)
Weighted-average common shares outstanding:
Basic (in shares)
Diluted (in shares)
Dividends declared per common share (in USD per share)
12 Months Ended
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
$ 605,881
5,408
611,289
$ 567,762
4,992
572,754
$ 555,233
3,918
559,151
463,721
127,140
20,428
429,000
117,812
25,942
420,315
116,288
22,548
1,787
341
(254)
1,874
0
1,538
17,016
5,724
11,292
388
$ 11,680
1,674
320
(158)
1,836
2,410
3,000
18,696
4,756
13,940
(267)
$ 13,673
1,976
339
(121)
2,194
0
(210)
20,564
6,858
13,706
(196)
$ 13,510
$ 4.29
$ 4.27
$ 4.90
$ 4.87
$ 4.77
$ 4.75
2,724
2,734
$ 2.24
2,792
2,805
$ 2.20
2,831
2,847
$ 2.16
Consolidated Balance Sheets – USD ($) $ in Millions
Current assets:
Cash and cash equivalents
Receivables, net
Inventories
Prepaid expenses and other
Total current assets
Property and equipment, net
Operating lease right-of-use assets
Finance lease right-of-use assets, net
Goodwill
Other long-term assets
Total assets
Current liabilities:
Short-term borrowings
Accounts payable
Accrued liabilities
Accrued income taxes
Long-term debt due within one year
Operating lease obligations due within one year
Finance lease obligations due within one year
Total current liabilities
Long-term debt
Long-term operating lease obligations
Long-term finance lease obligations
Deferred income taxes and other
Commitments and contingencies
Redeemable noncontrolling interest
Equity:
Common stock
Capital in excess of par value
Retained earnings
Accumulated other comprehensive loss
Total Walmart shareholders’ equity
Noncontrolling interest
Total equity
Total liabilities, redeemable noncontrolling interest, and equity
Jan. 31, 2023
$ 8,625
7,933
56,576
2,521
75,655
100,760
13,555
4,919
28,174
20,134
243,197
372
53,742
31,126
727
4,191
1,473
567
92,198
34,649
12,828
4,843
14,688
237
269
4,969
83,135
(11,680)
76,693
7,061
83,754
$ 243,197
Jan. 31, 2022
$ 14,760
8,280
56,511
1,519
81,070
94,515
13,758
4,351
29,014
22,152
244,860
17741
6516
44949
20861
90067
92201
13642
4005
28983
23598
252496
410
55,261
26,060
851
2,803
1,483
511
87,379
34,864
13,009
4,243
13,474
224
49141
37966
242
3115
1466
491
92645
41194
12909
3847
14370
0
0
276
4,839
86,904
(8,766)
83,253
8,638
91,891
$ 244,860
282
3646
88763
-11766
80925
6606
87531
252496
Consolidated Statements of Shareholders’ Equity – USD ($) shares in Millions, $ in Millions
Beginning balances (in shares) at Jan. 31, 2020
Beginning balances at Jan. 31, 2020
Increase (Decrease) in Stockholders’ Equity [Roll Forward]
Consolidated net income
Other comprehensive income (loss), net of income taxes
Cash dividends declared
Purchase of Company stock (in shares)
Purchase of Company stock
Cash dividend declared to noncontrolling interest
Sale of subsidiary stock
Other (in shares)
Other
Ending balances (in shares) at Jan. 31, 2021
Ending balances at Jan. 31, 2021
Increase (Decrease) in Stockholders’ Equity [Roll Forward]
Consolidated net income
Other comprehensive income (loss), net of income taxes
Cash dividends declared
Purchase of Company stock (in shares)
Purchase of Company stock
Cash dividend declared to noncontrolling interest
Sale of subsidiary stock
Other (in shares)
Other
Ending balances (in shares) at Jan. 31, 2022
Ending balances at Jan. 31, 2022
Increase (Decrease) in Stockholders’ Equity [Roll Forward]
Consolidated net income
Other comprehensive income (loss), net of income taxes
Cash dividends declared
Purchase of Company stock (in shares)
Purchase of Company stock
Cash dividend declared to noncontrolling interest
Purchase of noncontrolling interest
Sale of subsidiary stock
Other (in shares)
Other
Ending balances (in shares) at Jan. 31, 2023
Ending balances at Jan. 31, 2023
Total
$ 81,552
Common Stock
Capital in excess of par value
Retained earnings
2,832
$ 284
$ 3,247
$ 83,943
13,706
826
(6,116)
(2,658)
(365)
140
13,510
(6,116)
(20)
$ (2)
(97)
(2,559)
29
9
446
87,531
2,821
$ 282
467
(15)
3,646
88,763
13,940
2,770
(6,152)
(9,808)
(416)
3,239
787
91,891
13,673
(6,152)
(70)
$ (7)
(426)
952
10
$1
2,761
$ 276
667
(5)
4,839
86,904
11,292
(2,056)
(6,114)
(9,866)
(449)
(1,773)
66
(9,375)
11,680
(6,114)
(74)
$ (7)
(533)
(9,326)
(18)
48
6
763
$ 83,754
2,693
$ 269
633
(9)
$ 4,969
$ 83,135
Accumulated other comprehensive income (loss)
Total Walmart shareholders’ equity
$ (12,805)
$ 74,669
1,039
13,510
1,039
(6,116)
(2,658)
29
452
(11,766)
80,925
3,000
13,673
3,000
(6,152)
(9,808)
952
663
(8,766)
83,253
(1,652)
11,680
(1,652)
(6,114)
(9,866)
(1,262)
(1,280)
48
624
$ (11,680)
$ 76,693
Noncontrolling interest
$ 6,883
196
(213)
(365)
111
(6)
6,606
267
(230)
(416)
2,287
124
8,638
(388)
(404)
(449)
(493)
18
139
$ 7,061
Consolidated Statements of Cash Flows – USD ($) $ in Millions
Cash flows from operating activities:
Consolidated net income
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Depreciation and amortization
Net unrealized and realized (gains) and losses
Losses on disposal of business operations
Deferred income taxes
Loss on extinguishment of debt
Other operating activities
Changes in certain assets and liabilities, net of effects of acquisitions and dispositions:
Receivables, net
Inventories
Accounts payable
Accrued liabilities
Accrued income taxes
Net cash provided by operating activities
Cash flows from investing activities:
Payments for property and equipment
Proceeds from the disposal of property and equipment
Proceeds from disposal of certain operations, net of divested cash
Payments for business acquisitions, net of cash acquired
Other investing activities
Net cash used in investing activities
Cash flows from financing activities:
Net change in short-term borrowings
Proceeds from issuance of long-term debt
Repayments of long-term debt
Premiums paid to extinguish debt
Dividends paid
Purchase of Company stock
Dividends paid to noncontrolling interest
Purchase of noncontrolling interest
Sale of subsidiary stock
Other financing activities
Net cash used in financing activities
Effect of exchange rates on cash, cash equivalents and restricted cash
Net increase (decrease) in cash, cash equivalents and restricted cash
Change in cash and cash equivalents reclassified from (to) assets held for sale
Cash, cash equivalents and restricted cash at beginning of year
Cash, cash equivalents and restricted cash at end of year
Supplemental disclosure of cash flow information:
Income taxes paid
Interest paid
12 Months Ended
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
$ 11,292
$ 13,940
$ 13,706
10,945
1,683
0
449
0
1,919
10,658
2,440
433
(755)
2,410
1,652
11,152
(8,589)
8,401
1,911
0
1,521
240
(528)
(1,425)
4,393
(127)
28,841
(1,796)
(11,764)
5,520
1,404
39
24,181
(1,086)
(2,395)
6,966
4,623
(136)
36,074
(16,857)
170
0
(740)
(295)
(17,722)
(13,106)
394
7,935
(359)
(879)
(6,015)
(10,264)
215
56
(180)
102
(10,071)
(34)
5,041
(2,689)
0
(6,114)
(9,920)
(444)
(827)
66
(2,118)
(17,039)
(73)
(5,993)
0
14,834
8,841
193
6,945
(13,010)
(2,317)
(6,152)
(9,787)
(424)
0
3,239
(1,515)
(22,828)
(140)
(4,802)
1,848
17,788
14,834
(324)
0
(5,382)
0
(6,116)
(2,625)
(434)
0
140
(1,376)
(16,117)
235
10,121
(1,848)
9,515
17,788
3,310
$ 2,051
5,918
$ 2,237
5,271
$ 2,216
Ratio Analysis
Company
Liquidity
Ratios
CURRENT RATIO:
Walmart Inc
Current assets
Current liabilities
QUICK RATIO:
Cash + ST investments + receivables
Current liabilities
DEBT TO TOTAL ASSETS:
Total debt
Debt ratios
Total assets
DEBT TO TOTAL EQUITY:
Total debt
Total equity
TIMES INTEREST EARNED:
Income before tax and interest
Mangement
ratios
Interest charges
ACCOUNTS RECEIVABLE
TURNOVER:
Net credit sales
Average net accounts receivable
INVENTORY TURNOVER:
Cost of goods sold
Average inventory
NET PROFIT ON SALES:
Net income
Profitabilty ratios
Net sales
GROSS PROFIT MARGIN
Gross profit
Net sales
RETURN ON ASSETS:
Net income + interest
Average assets
RETURN ON EQUITY:
Net income – preferred dividends
Average common equity
BOOK VALUE:
Common equity
Common shares
EARNINGS PER SHARE:
Income available to common
arket ratios
Average number of shares
PRICE EARNINGS:
Market price per share
Market ratios
Earnings per share
DIVIDEND RATE/YIELD:
Annual cash dividend per share
Market price per share
DIVIDEND PAYOUT RATIO:
Annual cash dividend per share
Earnings per share
2,928.00
4,600.00
4,600.00
-8
4,592.00
4,592.00
3.62%
3.75
3.74
3.74
0.9
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2023
75,655.00
0.820570945
92,198.00
19,079.00
0.206935075
0.142472975
0.413699644
9.59962406
76.37476365
8.201137178
0.019277713
0.243559379
0.056583555
2.381729201
18.47211896
68.57029
429,000.00
13,673.00
143,754.00
15,667.00
13,673.00
4,839.00
5086.486486
13,940.00
8.456535
4.83
420,315.00
22,474.50
0.024082
13,510.00
555,233.00
0.253194
138,836.00
555,233.00
0.063001
15,825.00
126,248.00
0.292152
13,510.00
44,381.50
17.53261
88,763.00
3,646.00
6394.495
2.18
0.000811247
555,233.00
6,516.00
276.00
2.22
4.13
567,762.00
22,548.00
2,315.00
46,801.00
269.00
11,292.00
13.01003
248,678.00
4,904.00
4,969.00
25,942.00
41,194.00
87,531.00
567,762.00
244,028.50
11,680.00
0.379406
567,762.00
605,881.00
13,808.00
34,864.00
41,194.00
252,496.00
50,730.00
605,881.00
147,568.00
0.142383
8,280.00
56,543.50
11,680.00
34,864.00
45,118.00
92,645.00
1,994.00
7,933.00
463,721.00
0.281063
91,891.00
2,128.00
605,881.00
24,559.00
90,067.00
92,645.00
244,860.00
83,754.00
20,428.00
0.927797
87,379.00
243,197.00
34,649.00
81,070.00
87,379.00
92,198.00
34,649.00
2022
13,706.00
1.08
0.000755
4.77
5,086.49
2.24
6,394.50
0.542846287
4.13
2.24
5,086.49
2.16
12,690.74
0.447132
4.83
0.000440383
2.16
6,394.50
2.16
4.77
0.000338
2.16
12,690.74
2,928.00
4,600.00
4,600.00
-8
4,592.00
4,592.00
3.62%
3.75
3.74
3.74
0.9
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0.972173
0.486999
0.163147
0.470622
9.739957
85.21071
18.70186
0.024332
0.25005
0.125349
0.304406
24.34531
12690.74
0.000376
0.45299
0.00017
Ratio Analysis
Company
CURRENT RATIO:
QUICK RATIO:
DEBT TO TOTAL ASSETS:
DEBT TO TOTAL EQUITY:
TIMES INTEREST EARNED:
ACCOUNTS RECEIVABLE TURNOVER:
INVENTORY TURNOVER:
NET PROFIT ON SALES:
GROSS PROFIT MARGIN
RETURN ON ASSETS:
RETURN ON EQUITY:
BOOK VALUE:
EARNINGS PER SHARE:
PRICE EARNINGS:
DIVIDEND RATE/YIELD:
DIVIDEND PAYOUT RATIO:
Walmart Inc
2023
2022
2021
0.820570945 0.9277973 0.97217335
0.206935075 0.28106296 0.48699876
0.142472975 0.1423834 0.16314714
0.413699644 0.37940604 0.47062184
9.59962406 13.0100301 9.7399568
76.37476365 68.5702899 85.2107121
8.201137178 8.45653459 18.7018621
0.019277713 0.02408227 0.02433213
0.243559379 0.25319412 0.25004998
0.056583555 0.06300115 0.12534852
2.381729201 0.29215188 0.30440612
18.47211896 17.5326087 24.3453099
5086.486486 6394.49541 12690.7407
0.000811247 0.00075546 0.00037573
0.542846287 0.44713175 0.45299014
0.000440383 0.00033779 0.0001702
3 year %
change
16%
58%
13%
12%
1%
10%
56%
21%
3%
55%
-682%
24%
60%
-116%
-20%
-159%
1
Title of Paper in Bold Centered
Student Name
Herzing University
AC216 – Accounting II
Instructor Name
Due Date
2
Repeat the Title – Level 1 Header
Hit the tab key one time to begin the main body of the paper. The paragraphs of the main
document are indented. The computer will wrap your text for you based upon the margin settings
established by this document template. It is not necessary for you to hit the Enter or return key at
the end of a line of text. Only hit the enter key (one time) when you reach the end of a paragraph.
Then hit the tab key to indent and then continue typing the paper. In APA any source that you use
in your paper must have an in-text citation. In APA these citations include the author’s last name
and the year of the publication in parentheses (Name, Year).
Background
Sub-section your essay using sub-headers in the same sequence you introduced your topic
in your lead paragraph, your thesis.
Liquidity Ratios
Sub-section your essay using sub-headers in the same sequence you introduced your topic
in your lead paragraph, your thesis.
Management Ratios
Sub-section your essay using sub-headers in the same sequence you introduced your topic
in your lead paragraph, your thesis.
Debt Ratios
Sub-section your essay using sub-headers in the same sequence you introduced your topic
in your lead paragraph, your thesis.
Profitability Ratios
Sub-section your essay using sub-headers in the same sequence you introduced your topic
in your lead paragraph, your thesis.
3
Market Ratios
Sub-section your essay using sub-headers in the same sequence you introduced your topic
in your lead paragraph, your thesis.
Overall Assessment of Financial Health
Sub-section your essay using sub-headers in the same sequence you introduced your topic
in your lead paragraph, your thesis.
Conclusion
Begin to summarize the main points of your topic in three to five sentences. The
conclusion of your paper should re-phrase the points of what your reader should be left
remembering, nothing new, concise and to the point.
4
References
Lastname, C. (2008). Title of the source without caps except Proper Nouns or: First word after
colon. The Journal or Publication Italicized and Capped, Vol#(Issue#), Page numbers.
AC216 Final Project – Financial Analysis Report
Instructions
For the final of this course, you will analyze the accounting information of a company of your
choice. Activities throughout this course will guide you to accurately describe the company’s
health and support your conclusions with industry reports.
This assessment addresses the following course objective(s):
•
Analyze balance sheet equity entries.
Throughout this course, you will be discussing financial reports from a company you choose
from the following list.
•
•
•
•
•
Target (TGT)
Walmart (WMT)
Walgreens (WAG)
CVS (CVS)
Kroger (KR)
You can find information about your company by accessing the Hoover Library Database.
Follow the instructions in your course to find the financial reports for your chosen company.
You can also access more detailed Financial Reports in the Yahoo Finance links provided.
Suggested Timeline
Unit 1 – Chose your company. In the Unit 1 Discussion, you will share with the class which of
these companies you will analyze in this course
Unit 2 – Complete the financial tab in the excel spreadsheet. Start collecting the financial
information. You will find an open discussion board to post questions you may have
about filling out the spreadsheet or finding appropriate information. Please use this as a
collaborative forum. Feel free to ask questions. I am sure other students in the class have
the same question or may have an answer. Your professor will be monitoring this forum.
Unit 3 – Research your company, finding articles on the company’s financial performance. Use
the course discussions as a guide as your research and collect information about your
company. Keep a list of all your references as you go. Remember also to utilize the
Accounting Page of the Herzing Library for your research.
Unit 4 – Research your company, finding articles on the company’s financial performance. In this
unit you will submit the resources you have been using in the discussion and to help you
complete your analysis report.
Unit 5 – Research your company, finding articles on the company’s financial performance.
Perform initial ratio analysis in the excel spreadsheet template provided. You will then
receive feedback from your instructor for incorporating in your ratio calculations for unit
6.
Unit 6 – Complete the ratio calculations in the excel spreadsheet template provided. In this unit,
you will submit your ratio calculations spreadsheet incorporating any feedback from
your instructor in unit 5.
Unit 7 – Write the paper assessing the company’s financial health and submit the project.
There are three deliverables for this project
1. Reference List – Unit 4
2. Ratio Calculations – Unit 5 & 6
3. Financial Analysis Report – Unit 7
Reference List
The weekly discussions will guide you on the research of your chosen company. The Reference
page must be properly formatted in APA style.
You may find the following resources helpful in formatting your reference page.
•
•
•
Reference List: Basic Rules (Purdue Online Writing Lab, n.d.)
APA 7th Edition: References | Part I. (OWLPurdue, 2020)
APA 7th Edition: References | Part II. (OWLPurdue, 2020)
Your reference page should contain at least 4 references beyond the textbook and Hoover.
Ratio Analysis Calculations
In units 5 and 6, you will submit the ratio analysis calculations after compiling three years of
data for your company in the excel template provided.
Financial Analysis Report
After completing your research and the ratio analysis calculations, you will be prepared to
complete a financial health analysis on the company you have been following this term.
You will complete a 4-5-page paper discussing the company’s financial health by discussing
the ratio calculations. The ratios should be the basis for your evaluation of the company’s
financial position, note the trends determining which areas are improving and eroding. Be sure
to make a conclusion as to your opinion of the overall health of your company. After completing
your discussion of the ratio analysis, briefly discuss if the press reports on your company match
your numeric conclusions. Your paper should be supported with at least four outside references
beyond the textbook and Hoovers.
Paper Outline
1. Introduction
2.
3.
4.
5.
6.
7.
8.
9.
Provide background about the company
Discussion of the company’s liquidity ratios
Discuss the company management ratios
Discuss the company’s debt ratios
Discuss the company’s profitability ratios
Discuss the company’s market ratios
Discuss the overall assessment of the financial health of the company
Conclusion
Assignment File(s)
•
•
•
AC216 Final Assignment [PDF]
AC216 Final Ratio Analysis [Excel Spreadsheet]
AC216 Final Project Template [Word Document]
Resource(s)
Hoover’s Database. (n.d.) Dun & Bradstreet. https://prxherzing.lirn.net/MuseProxyID=mp02/MuseSessionID=6o32qfb5l/MuseProtocol=h
ttps/MuseHost=search.proquest.com/MusePath/hooverscompany/index
OWLPurdue. (2020 Dec 2). APA 7th Edition: References | Part I.
OWLPurdue. (2020 Dec 2). APA 7th Edition: References | Part II.
Purdue Online Writing Lab. (n.d.). Reference List: Basic Rules. Retrieved from
https://owl.purdue.edu/owl/research_and_citation/apa_style/apa_formatting_and_style_g
uide/reference_list_basic_rules.html
Yacht, C. & Lowenkron, M. (2021). Computer Accounting with QuickBooks® Online: A
Cloud-Based Approach. 3rd Edition.
Yahoo Finance. (n.d.). Target (TGT). [Website].
https://finance.yahoo.com/quote/TGT/financials?p=TGT
Yahoo Finance. (n.d.). Walmart (WMT). [Website].
https://finance.yahoo.com/quote/WMT/financials?p=WMT
Yahoo Finance. (n.d.). Walgreens (WBA). [Website].
https://finance.yahoo.com/quote/WBA/financials?p=WBA
Yahoo Finance. (n.d.). CVS (CVS). [Website].
https://finance.yahoo.com/quote/CVS/financials?p=CVS
Yahoo Finance. (n.d.). Kroger (KR). [Website].
https://finance.yahoo.com/quote/KR/financials?p=KR
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