Walmart's Adjusting Entries - Assignment Example

WALMARTS ADJUSTING ENTRIES al Affiliation) Wal-Mart Income ment over the last Four Financial Years Amount in MillionUS DollarsJan 31st 2011Jan 31st 2012Jan 31st 2013Jan 31st 2014Revenues421849446509468651476294Total Revenues421849446509468651476294Cost of Goods Sold314394334993352297358059Gross Profit106903115516116354118225The table above indicates a section of the Income Statement of the Wal-Mart Inc. for a period of over four yours. There are various adjustments that have been in value of the items listed in the table from January 31st 2012 to January 31st 2014.

Specifically, the revenues accrued by the company, from the table the revenues of the company has been adjusted over the last four years. This can be attributed to the fact that the company has been increasing the cost of the goods sold thereby leading to an increase of the total revenue each year. Economic analysts have argued that for a normal operating company with proper management, an increase in the cost of goods sold at relatively appropriate marketing conditions would automatically lead to an increase in the among of revenues accrued by such a company.

In the case that the adjustment was not made, it would indicate that the company has been operating under a fixed cost of selling goods; this would have led to preparation of an income statement with a constant value of revenue with basically no increase on the amount of profits that are made each year. ReferencesFinancial Statements for wal-mart stores inc (WMT). (n.d.). Businessweek.com. Retrieved April 19, 2014, from http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=WMT