Cash Flow Statement of Walmart-Free-Samples-Myassignmenthelp.com

Question: Using Walmarts Consolidated Statement of Cash Flows for the years 2016 and 2017, analyze the cash flow statements. In your analysis discuss where cash was generated and where it was used, as well as the resultant ramifications to the company. Answer: Analysis of the Consolidated Cash Flow Statement of Walmart for the years 2016 and 2017 The cash flow statement discloses the information about the cash receipts of Walmart and the payment of cash during the accounting time period and provides cash connects with the closing cash balance to the initial cash balance that has been disclosed in the financial position statement of the firm (Martnez et al., 2017). The cash flow statement comprises of three parts that includes the cash flows provided in the operating activities, cash flows given in the investing activities and the cash flows given in the financial activities. The net cash that has been exploited from all the operating activities of Walmart are inclusive of the discontinued activities of the reporting article. The operational activities are usually inclusive of delivering and producing goods and providing services. The operational activity cash flows even includes adjustments, transformations in the value and transactions that are not explained in the financing and the investing activities (Boyas, Teeter 2017). The net cash was created from the consolidated net income and this has been discovered to be the income from the sustainable operations. This cash has been used for the purpose of paying the income tax that has been accrued, accounts payable, inventories, depreciations and the deferred income tax. The cash flow statement provides the adjustments from the reconcile income from the sustaining operations to the net cash provided by the operational activities (Zentes et al., 2017). The net cash that is generated from the operating activities has been used for the purpose of payment of property and equipment, business acquisitions and investments and other investing activities. The other expenses that has to be paid off includes the payment of dividend, purchase of the stocks of the firm long term debt payment, and the net changes in the borrowings that are long term in nature. There are various other income as well that includes the proceeds from the issuance of the long term debt, proceeds from the disposal of the property and the equipment and proceeds from the disposal of various operations. The net cash rise or fall i n the cash equivalents and cash is adjusted with the cash equivalent that was available during the beginning of the year in order to find out the cash equivalent and the cash that would be presented in the end of the year. The assessment of the cash flow statement for the years 2016 and 2017 explains that net cash of Walmart from the operational activities has increased from 2016 to 2017 which has exceeded from 2015 (Wal-Mart Stores Inc. (WMT) | Statement of Cash Flows 2017). The net cash that has been used in the investing activities has even increased from 2016 to 2017 and there has been significant rise in the net cash used in the financial activities from 2016 to 2017 for Walmart as well. This explains that along with the rise in the net cash provided by the operating activities, the net cash used for the investing and financing activities has increased as well and therefore the cash at the end of the year has fallen significantly in 2017 from 2016. The cash equivalent for Walma rt at the end of 2017 has been lower than the last two years explaining that the operational activities of the company has increased and therefore there has been a rise in the cost associated with the production and delivering of services and goods (Wal-Mart Stores Inc. (WMT) | Statement of Cash Flows 2017). The following reveals the financial ratio of Walmart for the year 2016 and 2017 and it has been observed that all the ratios excepting the financial leverage has increased significantly from 2016 to 2017. This explains that the operational activity of Walmart has improved for the past few year and the company has been gaining significant level of profit Particulars Year 2017 Year 2016 Current ratio 0.93 0.86 Quick Ratio 0.22 0.19 Financial Leverage 2.48 2.56 Debt to equity 0.55 0.54 Reference List Boyas, E., Teeter, R. (2017). Teaching Financial Ratio Analysis using XBRL.Developments in Business Simulation and Experiential Learning,44(1). Martnez, A. B., Galvn, R. S., Alam, S. (2017). Financial Analysis of Retail Business Organization: A Case of Wal-Mart Stores, Inc.Nile Journal of Business and Economics,3(5), 67-89. Wal-Mart Stores Inc. (WMT) | Statement of Cash Flows. (2017). Stock Analysis on Net. Retrieved 11 December 2017, from https://www.stock-analysis-on.net/NYSE/Company/Wal-Mart-Stores-Inc/Financial-Statement/Statement-of-Cash-Flows Zentes, J., Morschett, D., Schramm-Klein, H. (2017). Monitoring Operational and Financial Performance. InStrategic Retail Management(pp. 441-461). Springer Fachmedien Wiesbaden.