ACCOUNTING FINAL EXAMANTION OF CORPORATE ANNUAL REPORT - Research Paper Example

1. of company – Walt-Mart Corporation Stock Symbol – WMT Principal stock exchange where the company trades – NYSE Market price of the stock as of - $54.13 on December 15, 2010 at 11:39 A.M. EST (Yahoo, 2010) Annual Dividend - $0.3025Last dividend paid on – September 7, 20102.The MD&A reports state that Wal-Mart is pursuing an organic growth model in order to continue to grow globally. The company has earned the trust of the customer by providing a wide variety of products at rock bottom prices.

The focus of the company is to provide exceptional value to its customers. The company is divided into business segments: Walt-Mart US, International, and Sam’s Club. Its US operation generated 63.8% of the company’s revenues. The company’s performance metrics emphasize three priorities for improving shareholder value: growth, leverage, and return. Comparable store sales were lower in 2010 in comparison with 2009 despite having higher customer traffic. The company made adjustments to increase its profitability by having better inventory management and lower inventory shrinkage. 3.Walt-Mart Corporation is the largest retailer in the world.

The company sells consumer products such as toys, food items, electronics and clothes. 4.The accounting firm that performed the independent auditor report was Earnest & Young LLP. The auditors did not find any problems or exceptions in the financial statement of the company. The opinion o f the auditing firm is that the financial statements are fairly presented in all materials respects. 5.I did not find any new terms in the financial statements of the company. The annual report included the four major financial statements which are the income statement, balance sheet, statement of cash flow, and statement of stockholder’s equity.

I found the presentation of the financial statement to be cleared since the company utilized the standard financial statements. 6. a) Current ratio = current assets / current liabilities = 48331 / 55561 = 0.87b) Quick ratio = (current assets – cash) / current liabilities = (48331-7907) / 55561 = 0.73c) Receivable turnover = sales on account / average accounts receivable turnover = n/a (all company sales are cash due to the nature of the retail business) d) Average days sales uncollected = 365 / receivable turnover = n/a e) Inventory turnover = cost of goods sold / average inventory balance = 304657/33160 = 9.19f) Profit margin = net income / sales = 14335 / 405046 = 3.54%g) Return on assets = net income / total assets = 14335 / 170706 = 8.40%h) Return on equity = net income / total equity= 14335 / 72929 = 19.66%i) Earnings per share = Net income – preferred dividends / average number of common share outstanding = 3.72 j) Debt to equity ratio = total liabilities / total equity = 97777 / 72929 = 1.34k) Dividend yield = Dividends per share / market price per share = 0.3025 / 54.13 = 0.05%l) Price earnings ratio = market price per share / earnings per share = 54.13 / 3.72 = 14.

55ReferencesYahoo.com (2010). Walt-Mart. Retrieved December 15, 2010 from http://finance.yahoo.com/q?s=WMT