Financial Reporting

Financial Reporting, Part II

.

ACC/290

August 1, 2011

Linda G. Gandy

Financial Reporting, Part II

After analyzing Wal-Mart’s balance sheet and income statement our group was able to identify areas of their financial statement that we have been working on throughout the course. We will identify areas of assets, cash equivalents, and liabilities. The information gathered tells us how Wal-Mart is operating and what the expected outcome should be. This information is not just useful for a learning experience but for managers, investors, and shareholders of the company as well. Wal-Mart has been very successful over the years and by looking further into the statements we can analyze the company with greater knowledge.

Team A’s consensus is the assets are listed correctly for Wal-Mart. Wal-Mart has listed them from current assets, property, plant, and equipment, and has listed property under lease. Current assets should always be listed first. Team A determined this because current assets contain cash and cash equivalents, receivables, inventories, prepaid expenses, and assets of discounted operations. This list of current assets is things that constantly change, therefore should always be listed first. Cash and inventory change daily. Every time a purchase is made or more stock comes in the current assets of the company will change. The property plant and equipment is then added to the assets. This is an asset because it is something the company owns. Property plant and equipment typically stay the same unless more is purchased. This is also something they will always have equity in. A building will stand for a long time. Equipment will also be around for a lo0ng time but at the same time does depreciate in value. Wal-Mart also has property under lease which is another asset to the company. This brings in an income for the company. Under plant leases and equipment they also listed the contra asset accounts for depreciation. Team A conceives they are listed...