(PART A: WALMART)This homework is about Walmart (NYSE: WMT). The questions you a

Question

(PART A: WALMART)This homework is about Walmart (NYSE: WMT). The questions you are required to answer relate to margins, cash flows, and working capital metrics. Express all margin answers using a percent symbol and to two decimal place (i.e., XX.XX%)· 11 POINT EACH? The following questions are based on the information disclosed in Walmart's Fourth Quarter (Q4) News Release, dated February 22, 2018: http://s2.q4cdn.com/056532643/files/doc_financials/2018/q4/Q4FY18-Earnings-Release- final.pdf What is the name of Walmart's CEO and President? How much operating cash flow did Walmart generate in Fiscal 2018? How much provisional benefit did Walmart record as a result of the tax reform? How many associates do Walmart employ worldwide as of Fiscal 2018? 1. 2. 3. 4. Based on the income statement: 5. Compute the gross margin (%) for Q4 of 2018 (excluding membership and other income). 6. Compute the gross margin (%) for the same period of 2017 (excluding membership and other 7. 8. 9. income) Compute the operating margin (%) for Q4 of 2018 (use total revenue). Compute the operating margin (%) for the same period of 2017 (use total revenue). Compute the net margin (%) for Q4 of2018 (excluding noncontrolling interest and use total revenue) 10. Compute the net margin (%) for the same period of 2017 (excluding noncontrolling interest and use total revenue).

Explanation / Answer

1. The name of Walmart’s CEO and President is Doug McMillon.

2. For the fiscal 2018 the company generated $28.3 billion as operating cash flow.

3. The amount of provisional benefit recorded by Walmart as a result of tax reform was $207 million. This amount was for both the full quarter and full year.

4. For fiscal 2018 the company had employed 2.3 million associates across the world.

5. Gross margin = gross margin/net sales.

Gross margin = net sales – cost of goods sold.

Gross margin % for Q418:

6. Gross margin % for Q42017:

7. Operating margin = operating income/total revenue.

For Q418:

8. Operating margin for Q417:

9. Net margin = consolidated net income (excluding non-controlling interest)/total revenue

For Q418:

10. For Q417:

Net sales (excluding membership and other income) 135,150.00 less: cost of sales -102,640.00 Gross margin 32,510.00 Gross margin % (gross margin/net sales) 24.05

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