Internet Exercises

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WAL-MART

Wal-Mart is the Number 1 retailer in the world with about 4,800 stores, including 1,475 discount stores, 1,700 combination discount and grocery Supercenters, and 533 membership-only SAM'S CLUB stores.

This activity contains 2 questions.

Go to http://www.hoovers.com and then in the Search box type WMT, the stock symbol for Wal-Mart, then search "by Ticker."

a.	Review the written description of the company. List at least three countries other than the United States that have Wal-Mart stores.
b.	Scroll down to find the following information: What is the company's ranking in the Fortune 500?

To create paragraphs in your essay response, type <p> at the beginning of the paragraph, and </p> at the end.

At the top of the page click on the URL for Wal-Mart, http://www.walmartstores.com, and go to their Web site. Click on the Investor Information tab followed in the left-hand column menu by Annual Reports. Select the most recent annual report in the HTML format. Use the information in the annual report to answer the following questions.

a.	Find the Financial Highlights. Does it appear that Wal-Mart had a good year? Why or why not?
b.	In the Table of Contents click on Financials and then find the financial statements and the accompanying notes to answer the following questions.

For the two most recent years list the amounts reported for "Net sales" and "Cost of sales." For each year calculate gross profit and the gross profit percentage. Comment on the trend of the gross profit percentage, what the trend might indicate, and whether the trend is considered favorable or unfavorable.

Click on "NEXT" until you find the inventory section on the balance sheet. For the two most recent years, what amount is reported for "At Replacement Cost" for inventories? Is this value closer to the FIFO or the LIFO value of inventories? Why? For the two most recent years, what amount is reported for Inventories at LIFO Cost? Is the At Replacement Cost or the LIFO Cost added to calculate total assets?

Click on "NEXT" until you find Note 1: Summary of Significant Accounting Policies. Which inventory costing methods does Wal-Mart use? Does your answer violate the Consistency Principle?

If all inventories had been reported using the FIFO costing method would the following amounts be higher, lower, or remain the same?

a.	Total assets
b.	Cost of goods sold
c.	Gross profit
d.	Net income

To create paragraphs in your essay response, type <p> at the beginning of the paragraph, and </p> at the end.

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