Wal-Mart provides a perfect illustration of inventory disclosure.
Required: Locate
the Investor Relations section of Wal-Mart’s corporate website, and access the
2013 annual report. The 2013 financial statements are for the period February
1, 2012 – January 31, 2013. Refer to http://stock.walmart.com, the 2013 10-K
http://www.sec.gov/Archives/edgar/data/104169/000010416913000011/wmt10-k.htm to
answer the following questions.
1. Discuss two types of information, other than financial
statements, that can be found on Walmart’s Investor website.
2. Briefly discuss why you think Walmart has chosen a fiscal
year end of January 31.
3. What is Walmart’s ending inventory as of January 31,
2013? What percentage of Walmart’s total assets is the Inventories asset?
4. What is Walmart’s Cost of Sales expense for 2013? Walmart
does not highlight Gross Profit on its Income Statement. What is Walmart’s 2013
Gross Profit? What percentage of Walmart’s Net Sales is Cost of Sales expense?
5. Briefly discuss Walmart’s key accounting policies related
to inventory. Which of these methods did we cover in class?
6. Locate Walmart’s discussion of purchase obligations in
Management’s Discussion and Analysis. What is the total of payments due 2014
related to purchase commitments? What does Walmart include in this amount? Are
purchase orders included?
