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Chapter 17 discussion 6 Unlocked: Monday, December 4, 2017 12:00 AM EST- Monday.

ID: 2587013 • Letter: C

Question

Chapter 17 discussion 6 Unlocked: Monday, December 4, 2017 12:00 AM EST- Monday. December 11, 2017 11:00 PM EST Must post first. Locate the balance sheet of a publicly-traded corporation online in its annual re and answer the following questions: port(10-K) 1. What were the total current assets this year and last year for the company you chose? 2. What were the total current liabilities this year and last year for the company you chose? 3. Calculate the Current Ratio for this year and last year for the company you chose. 4. Analyze your company's current ratio (is it good/bad: how does it compare to the prior year, etc.) 5. Include a link to the URL from which you located the company's annual report. In your replies to your classmates, compare your company's Current Ratio to their company's Current Ratio. Report which company has the better ratio and why. What are some factors

Explanation / Answer

Company selected is Wal-Mart Stores, Inc.
1. Current assets as of Jan.31, 2017 = $57,689
Current assets as of Jan.31, 2016 = $60,239
2. Current liabilities as of Jan.31, 2017 = $66,928
Current liabilities as of Jan.31, 2016 = $64,619
3. Calculation of current ratio:
Current ratio = Current assets / Current Liabilities
Current ratio for 2017 = 57,689 / 66,928 = 0.86 times
Current ratio for 2016 = 60,239 / 64,619 = 0.93 times
4. Current ratio of the company has deteriorated in 2017 as compared to last year that means liquidity position of the company has worsened. So the company must make serious efforts to improve its liquidity position by increasing its current ratio.

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