Grossmont College Walmart Financial Statement Analysis

My company is Walmart 

Outline for your paper—less than 3 pages text.
? Company overview (10%):  Name, description of business, operating locations,
revenues, net income, EPS, stock price, number of employees and other relevant
information.
? Balance Sheet (40%):  Discuss significant accounting policies with an emphasis on
compliance with GAAP accounting (ignore insignificant items).  
i. Revenue/Accounts Receivable:  What are the revenue recognition and Bad debt
policies? Explain the reasons for  unearned/deferred revenue balances.  
Calculate the Collections and AR:Sales ratios.
ii. Inventory: Describe the inventory accounting methods.  Calculate inventory
turnover ratios.  Explain inventory write-downs/write-offs, if any.
iii. Tangible non-current assets:  Describe the capitalization and depreciation
policies.  What is the PPE: Sales ratio.  Is this a capital intensive business?

iv. Intangible non-current assets:  describe the capitalization and amortization 

policies.  What is the ratio of intangibles to total assets.  Is management
philosophy to organically grow the business or to acquire other
companies/intellectual property?
v. Other:  Highlight unusual items disclosed in the footnotes such as changes in
accounting, write-offs, gains or losses, contingencies.
? Income statement (20%):  Evaluate the income statement as well as non-financial
information to address the following items.
i. Income statement unusual items:  Explain the nature of major restructuring,
impairments, discontinued operations.  What is the impact from these items in
future periods?
ii. Ratios:  Calculate gross profit/margin and net income:sales ratios
? Analysis of statement of cash flows (20%)
i. Compare net income amount to the cash flow from operations amount—why
are they different?
ii. How does the company invest its cash?  
? Investment recommendations (10%)
i. Assume you are an investment analyst and are tasked to make a buy/sell
recommendation for your company given today’s stock price.  What is your

recommendation and why?

3.  The statement of cash flow operating cash flow comparison to Net Income should include a list of the major items causing the difference.  This typically includes depreciation and amortization, but will include other items as well.  If the explanation for the item is not clear, you should explain what it is.

4.  For the cash flow discussion the investing prompt should include major activity in the Investment and Financing sections of the SCF.  typical are investments in facilities and equipment, new share or bond issuance, dividends, or repurchase of shares/bonds.