Accounting Process Review

Financial analysis

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The investor may consider various items from the balance sheet, income statement and cash flow before investing 1,000 in Wal-Mart Company. The helpful information from the balance sheet includes book value per share, inventory turnover, cash holding per share, total assets turnover, debt to equity ratio, net worth, current ratio and quick ratio. The information from the income statement includes the return on net worth, profit margin, return on equity and return on assets. The final report from the cash flow statement consists of the free cash flow statement. The balance sheet ratios help determine the efficient management of the resources in sustaining the company's operations. The investor will use the information from the income statement to assess the profitability of the organization and the possible benefit of investment in the company (Nathan, 2019). The free cash flow from the cash flow statement helps the investors determine the organization's cash balance after meeting all the operational costs for the financial year.

i) The total assets of the organization for the current period and period periods were 252,496 and 236,495 million dollars, respectively.

ii) The total liabilities of the organization for the current period and period periods were 164,965 and 154,943 million dollars, respectively (United States security and exchange commission, 2021).

iii) The total net equity of the organization for the current period and period periods were 87,531 and 81,552 million dollars, respectively.

iv) The total contributions from owners of the organization for the current period and period periods were 80,925 and 74,669 million dollars, respectively (Yahoo Finance, 2021).

v) The total contributions to owners of the organization for the current period and period periods were 1,551,550 and 1,512,000 million dollars, respectively.

vi) The total revenue of the organization for the current period and period periods were 559,151 and 523,964 million dollars, respectively (Yahoo Finance, 2021).

vii) The total operating expenses of the organization for the current period and period periods were 116,288 and 108,791million dollars, respectively (United States security and exchange commission, 2021).

viii) The total non-operating gains of the organization for the current period and period periods were 210,000 and 1,958,000 million dollars, respectively.

ix) The total non-operating losses of the organization for the current period and period periods were 2,194,000 and 2,410,000 million dollars, respectively.

x) The total comprehensive income of the organization for the current period and period periods were 14,532 and 13,966 million dollars, respectively (Yahoo Finance, 2021).

References

Nathan, N. (2019, September 16). Company balance sheet: 12 things to look for in a company’s balance sheet. The Economic Times.  https://economictimes.indiatimes.com/wealth/invest/12-things-to-look-for-in-a-companys-balance-sheet/articleshow/71124783.cms

United States security and exchange commission. (2021, January 31). Wal-Mart Annual report 2021. Wal-Mart Corporate.  https://corporate.walmart.com/media-library/document/2021-annual-report/_proxyDocument?id=00000178-f54f-db6f-adfe-fdcf018d0000

Yahoo Finance. (2021, January 30). Wal-Mart Inc. (WMT). Yahoo Finance - Stock Market Live, Quotes, Business & Finance News.  https://finance.yahoo.com/quote/WMT/financials?p=WMT