Homework Help is Here – Start Your Trial Now!
Business
Accounting
llowing table gives abbreviated balance sheets and income statements for Walmart. At the end of fiscal 2019, Walmart had 2,832 shares outstanding with a share price of $94. The company's weighted-average cost of capital was about 5%. Assume a tax 21%. Balance Sheet (figures in $ millions) Fiscal 2019 :ts rent assets: sh and marketable securities counts receivable ventories her current assets Total current assets ed assets: et fixed assets her long-term assets Total assets ilities and Shareholders' Equity rent liabilities: counts payable her current liabilities $ 9,465 6,284 44,435 1,622 $ 61,806 $ 127,049 47,640 $ 236,495 $ 46,973 30,817 00 Fiscal 2018 $ 7,722 6,283 44,269 3,623 $ 61,897 $ 111,395 46,003 $ 219, 295 $ 47,060 30,417

llowing table gives abbreviated balance sheets and income statements for Walmart. At the end of fiscal 2019, Walmart had 2,832 shares outstanding with a share price of $94. The company's weighted-average cost of capital was about 5%. Assume a tax 21%. Balance Sheet (figures in $ millions) Fiscal 2019 :ts rent assets: sh and marketable securities counts receivable ventories her current assets Total current assets ed assets: et fixed assets her long-term assets Total assets ilities and Shareholders' Equity rent liabilities: counts payable her current liabilities $ 9,465 6,284 44,435 1,622 $ 61,806 $ 127,049 47,640 $ 236,495 $ 46,973 30,817 00 Fiscal 2018 $ 7,722 6,283 44,269 3,623 $ 61,897 $ 111,395 46,003 $ 219, 295 $ 47,060 30,417

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 4PB
See similar textbooks
icon
Related questions
Question
The following table gives abbreviated balance sheets and income statements for Walmart. At the end of fiscal 2019, Walmart had 2,832 million shares outstanding with a share price of $94. The company's weighted-average cost of capital was about 5%. Assume a tax rate of 21%. Assets Current assets: Cash and marketable securities Accounts receivable Inventories Balance Sheet (figures in $ millions) Fiscal 2019 Other current assets Total current assets Fixed assets: Net fixed assets Other long-term assets Total assets ies and Shareholders' Equity Current liabilities: Accounts payable Other current liabilities Total current liabilities Long-term debt Other long-term liabilities Total liabilities Total shareholders' equity Total liabilities and shareholders' equity Net sales Cost of goods sold Selling, general, and administrative expenses Depreciation Other income/expenses Earnings before interest and taxes (EBIT) Interest expense Taxable income Tax Net income Income Statement (figures in $ millions) b. Calculate the market-to-book ratio. Note: Round your answer to 2 decimal places. $ 9,465 6,284 44,435 1,622 $ 7,722 6,283 44,269 3,623 $ 61,806 $ 61,897 a. Market value added b. Market-to-book ratio c. Economic value added d. Return on capital $ 127,049 47,640 $ 236,495 million $ 16.02 x % $ 46,973 $ 47,060 30,817 $ 77,790 43,714 33,439 $ 154,943 81,552 236,495 Answer is complete but not entirely correct. $ 184,656 million 3.26 10,100 Fiscal 2018 $ 111,395 46,003 $ 219,295 a. Calculate the market value added. Note: Enter your answer in millions rounded to nearest whole number. $ 523,964 394, 605 $ 139,661 79,634 $ $ 219,295 97,804 10,987 2,147 $ 22,715 $ 2,599 20,116 4,915 $ 15,201 c. Calculate the economic value added. Note: Do not round intermediate calculations. Enter your answer in millions rounded to nearest whole number. d. Calculate the return on start-of-the-year capital. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. 30,417 $ 77,477 43,520 18, 664
Transcribed Image Text:The following table gives abbreviated balance sheets and income statements for Walmart. At the end of fiscal 2019, Walmart had 2,832 million shares outstanding with a share price of $94. The company's weighted-average cost of capital was about 5%. Assume a tax rate of 21%. Assets Current assets: Cash and marketable securities Accounts receivable Inventories Balance Sheet (figures in $ millions) Fiscal 2019 Other current assets Total current assets Fixed assets: Net fixed assets Other long-term assets Total assets ies and Shareholders' Equity Current liabilities: Accounts payable Other current liabilities Total current liabilities Long-term debt Other long-term liabilities Total liabilities Total shareholders' equity Total liabilities and shareholders' equity Net sales Cost of goods sold Selling, general, and administrative expenses Depreciation Other income/expenses Earnings before interest and taxes (EBIT) Interest expense Taxable income Tax Net income Income Statement (figures in $ millions) b. Calculate the market-to-book ratio. Note: Round your answer to 2 decimal places. $ 9,465 6,284 44,435 1,622 $ 7,722 6,283 44,269 3,623 $ 61,806 $ 61,897 a. Market value added b. Market-to-book ratio c. Economic value added d. Return on capital $ 127,049 47,640 $ 236,495 million $ 16.02 x % $ 46,973 $ 47,060 30,817 $ 77,790 43,714 33,439 $ 154,943 81,552 236,495 Answer is complete but not entirely correct. $ 184,656 million 3.26 10,100 Fiscal 2018 $ 111,395 46,003 $ 219,295 a. Calculate the market value added. Note: Enter your answer in millions rounded to nearest whole number. $ 523,964 394, 605 $ 139,661 79,634 $ $ 219,295 97,804 10,987 2,147 $ 22,715 $ 2,599 20,116 4,915 $ 15,201 c. Calculate the economic value added. Note: Do not round intermediate calculations. Enter your answer in millions rounded to nearest whole number. d. Calculate the return on start-of-the-year capital. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. 30,417 $ 77,477 43,520 18, 664
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Balance Sheet Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Fundamentals Of Financial Management, Concise Edi…
Fundamentals Of Financial Management, Concise Edi…
Finance
ISBN:
9781337902571
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS