Question 13 15 pts Wal-Mart (in millions, except for per share data) Consolidate

Question

Question 13 15 pts Wal-Mart (in millions, except for per share data) Consolidated Statements of Operations Fiscal Year Ended 31-Jam 31-Jam 31-Jam 31Jan 31-Jan 31-Jan 31-Jan XS x3 X7 x8 $43887 $55,484 $67345 S82,494 S93,627 S $104859A Net sales Rentals from licensed dept. Other income, net 918 1,122 374 44289 55,985 67,985 83,412 94,749 106,146 118,884 34,786 44,174 53,444 65,586 74564 83,663 465 593 Total revenues Cost of sales Operating, selling,general & nses 66848.321 10333 12.858 14951 1 16.788 Total operating expenses 41,470 52,495 63777 78,444 89,515 100,451 Operating income 2819 3490 4208 4,968 5234 5,6956,378 Interest costs 629 Debt Capital leases 113 143 331 520 692 196 186 153 266 180 186 845 930 4850 5,449 1530 182016 1.794 2,016 1608 1.995 2333 S2.681 S2.740 3056 53.433 4262 4346 Income before taxes Income tax expense 2,5533,167 3,691 Current 1,974 (1S0) 1,1371325 Deferred 945 1.172 1358 1.581 1.606 Net income EPS Dnidends per share (for the whole year) S0.70 S0.87 S1.02 S1.17 S1.19 S1.33 SA.11 $0.13 S0.17 50.20 0.21

Explanation / Answer

Calculation of Return on Common Equity(ROCE) for Fiscal X4 and X7-: ($ in millions)

Sl. No Particulars Fiscal X4 Fiscal X7

1 Net Income 2,333 3,056

2. Opening Common Equity 229 229

3. Closing Common Equity 229 228

4. Averge Common Equity {[2+3]/2} 229 228.5

5. ROCE [1/4] 10.18 13.37

Notes:
1. Average Capital Employed has been used for calculating ROCE

2. Information about common stock for fiscal X4 has not given in the question, so it was assumed that what ever common stock for fiscal X6 is same for fiscal X4.  

Calculation of Net Operating Profit Margin: [$ in millions]

Sl. No Particulars X4 X5 X6 X7

1. Operating Income 4,208 4,968 5,234 5,695

2. Total Revenue 67,985 83,412 94,749 106,146

3. Net Operating Profit Margin [1/2] 0.06 0.06 0.06 0.05

Calculation of Net Operating asset turnover: [$ in millions]

Sl.No Particualrs X7

1. Total Revenue 106,146

2. Opening Total Assets 37,541

3. Closing Total Assets 39,604

4. Average Assets {[2+3]/2} 38,572.5

5. Net operating asset turnover [1/4] 2.75

Notes:

1. Net operating asset turnover is calculated only for fiscal X7 only due to lack of information about assets details for remaining fiscals.

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