As an employee, write an internal memo to your manager addressing the following:
ID: 2603301 • Letter: A
Question
As an employee, write an internal memo to your manager addressing the following:
Using the Internet, locate the most recent annual report of a company of your choosing and write an initial post by responding to the following: (WALMART IS MY COMPANY)
Do not research the company listed in the text.
For the most recent day indicated, what were the highest and lowest prices at which the company’s common stock sold?
Find the company’s balance sheet and determine the following: the number of outstanding shares of common stock and the average price at which those shares were originally sold.
What is the relationship between the current market price and the amount you have calculated in part b as the average price at which the stock originally sold?
Find the company’s income statement and identify the trend in basic earnings per share, including discontinued operations. Did discontinued operations have a significant impact on EPS?
For the most recent year, what is the average number of shares of common stock that was used to compute basic earnings per share? Why is that number different from the number outstanding in the company’s balance sheet?
Current Liabilities Accounts Payable 10,989,000 11,654,000 11,542,000 Short/Current Long Term Debt 1,718,000 815,000 91,000 Other Current Liabilities 1,000 153,000 103,000 Total Current Liabilities 12,708,000 12,622,000 11,736,000 Long Term Debt 11,031,000 11,945,000 12,634,000 Other Liabilities 1,878,000 1,915,000 1,645,000 Deferred Long Term Liability Charges 861,000 823,000 1,160,000 Minority Interest - - - Negative Goodwill - - - Total Liabilities 26,478,000 27,305,000 27,175,000 Stockholders' Equity Misc. Stocks Options Warrants - - - Redeemable Preferred Stock - - - Preferred Stock - - - Common Stock 46,000 50,000 53,000 Retained Earnings 5,884,000 8,188,000 9,644,000 Treasury Stock - - - Capital Surplus 5,661,000 5,348,000 4,899,000 Other Stockholder Equity -638,000 -629,000 -599,000 Total Stockholder Equity 10,953,000 12,957,000 13,997,000 Net Tangible Assets 10,953,000 12,957,000 13,997,000Period Ending Current Assets Cash And Cash Equivalents 1/28/2017 1/30/2016 1/31/2015 2,512,000 4,046,000 2,210,000 Short Term Investments Net Receivables 8,309,000 1,169,000 11,990,000 8,601,000 1,483,000 14,130,000 8,282,000 3,132,000 13,624,000 Inventory Other Current Assets Total Current Assets Long Term Investments Property Plant and Equipme Goodwill Intangible Assets nt 24,658,000 25,217,000 25,952,000 Accumulated Amortization Other Assets Deferred Long Term Asset Charges Total Assets 783,000 915,000 1,596,000 37,431,000 40,262,000 41,172,000
Explanation / Answer
Memo
To: Manager
From: XYZ
Date: 11th January, 2018
Dear Sir/Madam,
I would like to bring your attention to the following matters regarding the company Walmart
A) The highest and the lowest price as on 28th January, 2017 of the company's stock is:
Highest Price= $66.97
Lowest Price= $65.28
B) The number of outstading stock:
as on 28th January, 2017= 4600
The average price of the shares:
as on 28th January, 2017= $65.66
C) Although no proper relationship can be established between the current market price and the average price of the stock but current market price is the price at which share is qouted in the market depending upon the demand and sale of the stock, while average market price the price which is arrived using the highest price and the lowest price of the stock as on a particular date.
D) The basic earning per share of the company is $4.40 as on 31st January, 2017 and the earning per share has gradually reduced for the company as compared to the earlier years.
Since the company is not having any discontinued operation in the year 2016-17 thus there will be no effect on the basic earning per share due to the discontinued operations.
E) For the most recent year, i.e. 2016-17 the average number of shares used to determine the basic earning per share is 3101.
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