principal offices of Walmart located | My Assignment Tutor

To complete this assignment, you will need to access to the following documents from the SEC’s website: Form 10-K for Wal Mart Stores (the Company) for the fiscal year ended January 31, 2020 (fiscal 2020) – filed with the SEC on March 20, 2020Proxy Statement (Schedule DEF 14A) for Wal Mart Stores. (the Company) for the 2020 annual shareholders’ meeting – filed with the SEC on April 23, 2020A Form 8-K: that was filed on June 5, 2020 and a second Form 8-K that was filed on November 17, 2020 You will also need to access Walmart’s corporate website at NOTE: Feel free to copy-and-paste any answers when you think it is appropriate to do so. It is generally better to cut-and-paste an answer when possible rather than to try to paraphrase a response. Form 10-K (4 points) Where are the principal offices of Walmart located? When and where was Walmart incorporated? When did Walmart open its first supercenter? When did Walmart begin its first eCommerce initiative? What was created by this initiative? Answer: (3 points) As of January 31, 2020 in how many foreign countries did the Walmart International segment operate? Walmart International operates through wholly-owned subsidiaries in what seven countries? Answer: (3 points) The Company’s largest “reportable segment,” Walmart U.S., has three retail store formats. What is offered at each of the retail store formats? What is the average square footage of each of the retail store formats? Answer: (5 points) What are the two types of membership that are available for the Sam’s Club segment “warehouse clubs?” What is the annual fee for each? How many “Add-on Memberships” are allowed for each? How much do “Add-on Memberships” cost for each? Answer: (3 points) List the merchandise categories for the Sam’s Club segment. Answer: (3 points) How many suppliers does the Company have in its global supply chain? As of the end of fiscal 2020, how many employees did the company have? How many of these were employed in the U.S.? How many were employed internationally? Answer: (5 points) Item 1A of the Company’s Form 10-K lists 20 “Risk Factors” in four categories. What are the four categories of risk? Choose any two of the 20 identified “Risk Factors” and write a brief synopsis of each. Choose one “Risk Factor” from two different categories. Answer: (2 points) Item 1B. Unresolved Staff Comments is found on page 23 of the Form 10-K. Who is the “Staff” that is referred to here? Answer: (3 points) As of January 31, 2020, how many Supercenters were in North Carolina? How many Discount Stores were in Texas? How many Neighborhood Markets and other small formats were in Ohio? How many Sam’s Clubs were in Alabama? Answer: (3 points) How many U.S. distribution facilities are leased? How many are owned? How many international distribution facilities are owned? How many are leased? Answer: (2 points) On what exchange is Walmart common stock traded? How many common stock shareholders of record were there as of March 18, 2020? Answer: (4 points) On October 2017, the Board of Directors authorized a $20 billion share repurchase program. On January 31, 2020 how much of the $20 billion remains and is authorized for future repurchase of shares? What happens to the shares that are repurchased as part of the program? How many shares were repurchased in each month in the last quarter of fiscal 2020? Answer: (14 points) Using information presented in the Five-Year Financial Summary, calculate the percentage increase/decrease in net sales, gross profit margin (based on net sales) in dollars, operating income, dividends declared per common share, total assets, total Walmart shareholders’ equity and total unit counts from the fiscal year ended January 31, 2016 to the fiscal year ended January 31, 2020. (Do not include percentage increases for interim years). Show your calculations and round your percentages to two decimal places. Answer: Percentage Increase/Decrease from January 31, 2016 to January 31, 2020Net salesGross profit margin (based on net sales) in dollarsOperating incomeDividends declared per common shareTotal assetsTotal Walmart shareholders’ equityTotal units (18 points) In the Management’s Discussion and Analysis of Financial Condition and Results of Operations (MDA) under the heading “Company Performance Metrics,” the Company says, “We are committed to helping customers save money and live better through everyday low prices, supported by everyday low costs.  At times, we adjust our business strategies to maintain and strengthen our competitive positions in the countries in which we operate.  We define our financial framework as: strong, efficient growthconsistent operating disciplinestrategic capital allocation As we execute on this financial framework, we believe our returns on capital will improve over time.” Comment on the three aspects of the Company’s financial framework listed above as well as its returns on capital. What metrics does the Company use to measure its return on capital? In your answer to this question, comment on the three components of Walmart’s financial framework and its measures of return on capital both for the fiscal year ended January 31, 2020 and the fiscal year ended January 31, 2019. (Your answer to this question should be roughly one page in length double-spaced and a 12-point font) Answer: (3 points) Also from the MDA, what does the Company say about its change in Strategic Capital Allocations in fiscal 2020 relative to prior years? Answer: (5 points) In the MDA, the Company indicates that its long-term debt increased for fiscal 2020. By how much did the long-term debt increase? Explain why it increased. What factors impact the Company’s decision making as it applies to executing share repurchases? Answer: (2 points) Lastly from the MDA, did the Company have any material off balance sheet arrangements as of January 31, 2020? Answer: (4 points) In the Report of the Independent Registered Public Accounting firm, what does EY say about Walmart’s “Adoption of ASU No. 2016-02?” What are the two “Critical Audit Matters” identified in this report? Answer: (4 points) With whom is the independent public accounting firm “registered”? What criteria does Ernst & Young use in its audit of Walmart’s internal control over financial reporting? Is there any component of the annual report to shareholders that is designated as “Unaudited”? Answer:   (3 points) What is the denominator used in the determination of (a) basic and (b) diluted net income per common share attributable to Walmart for fiscal 2020? How do these figures compare to the figures used for fiscal 2019? For fiscal 2018? Answer: (3 points) How did the basic and diluted net income per common share attributable to Walmart in fiscal 2020 EPS compare to the basic and diluted net income per common share attributable to Walmart in fiscal 2019? In fiscal 2018? Answer: (4 points) The Company presents its Consolidated Balance Sheets for the fiscal years ending January 31, 2020 and 2019 on page 52 of the Form 10-K. Would you say that the balance sheets that are presented are “classified?” Why or why not? Answer: (12 points) Use the Company’s Consolidated Balance Sheet as of January 31, 2020 to complete the table below. Round your percentages to two decimal places. Answer: Amount (in millions)% of Total AssetsCurrent assetsProperty and equipment, net of accumulated depreciationRight-of-use assets (operating and finance leases)Goodwill and Other long-term assetsCurrent liabilitiesLong-term liabilities (include long-term operating and finance lease obligations)Deferred income taxes and otherContributed capitalRetained earningsAccumulated other comprehensive lossNoncontrolling interest (4 points) Calculate the Company’s current ratio (rounded to four decimal places) and its working capital as of January 31, 2020 and 2019. Show your calculations. Then comment on whether the Company’s liquidity showed improvement at the end of fiscal 2020 relative to the end of fiscal 2019. Use the table provided below to present answers to the first question. Answer the second question in the space below the table. (Note: Your commentary should be no longer than a couple of sentences.) Answer: Current RatioWorking Capital (in millions)As of January 31, 2020As of January 31, 2019 Commentary: (4 points) Complete the table below to indicate the total amount of dividends declared and the dividend amounts per share for the fiscal years ending January 31, 2018, January 31, 2019, and January 31, 2020 respectively. In addition, what will the dividend amount per share be for the fiscal year ending January 31, 2021? Answer: Fiscal year endingTotal Dividends DeclaredDividends per ShareJanuary 31, 2018January 31, 2019January 31, 2020January 31, 2021 (2 points) For the fiscal year ended January 31, 2020, did the Company use the direct or indirect method to determine the net cash provided by operating activities? How do you know? Answer: (2 points) Toward the bottom of the Consolidated Statements of Cash Flows you will find a line item entitled “Net increase (decrease) in cash, cash equivalents and restricted cash.” How does the Company define cash equivalents? Answer: (3 points) By its very nature, financial reporting requires the use of estimates and assumptions. For example, you should all remember that bad debt expense is an estimate as are the useful life and salvage value of depreciable assets. What does the Company say about its use of estimates in financial reporting? Answer: (2 points) What are the main sources of the Company’s accounts receivable? As of January 31, 2020, what amount of accounts receivable were from transactions with customers? How about as of January 31, 2019? Answer: (4 points) When did the Company adopt ASU 2016-02, Leases (Topic 842) and the related amendments? What approach was used to account for the adoption? What was the effect on total assets and total liabilities in the first quarter of fiscal 2020 of the adoption of ASE 2016-02 and the related amendments? Answer: (3 points) What factors caused the change in total goodwill for the Company from January 31, 2019 to January 31, 2020? How much was the effect of each? With what “reportable segment” was each factor attributed? Answer: (5 points) Walmart discloses the disaggregated revenue for each of its segments.  For each segment, what is the dollar amount of total net sales related to e-commerce for fiscal 2020? For fiscal 2019?   Answer: (3 points) According to information in Walmart’s Form 10-K, who is responsible for establishing and maintaining adequate internal control over financial reporting? Describe any changes in internal control over financial reporting in fiscal 2020. Answer: Proxy Statement (3 points) According to Thomas W. Horton, Lead Independent Director, what are the three aspects of the “Board’s ongoing commitment to robust governance and oversight?” Answer: (3 points) What is the web address for those shareholders who would like to attend the Company’s 2020 virtual annual shareholders’ meeting? Who can vote at the meeting? Answer: (5 points) What is the agenda or “Items of Business” for the Company’s 2020 annual shareholders’ meeting? Answer: (4 points) There were company and shareholder proposals that were voted on at the Company’s 2020 annual shareholders’ meeting. Identify each of the proposals to be voted on and indicate whether the Board (BOD) recommended that the shareholders vote for or against the proposal. Answer: (8 points) Eleven individuals were up for election to the Board of Directors. List the nominees who are considered independent directors. Who is identified as the Lead Independent Director? What is the term limit for the independent directors? How does the Company assess the “independence” of a director? In your answer, you do not need to include the list of “Materiality Guidelines”. Answer: (8 points) How many “Board Committees” (committees whose members are members of the BOD) are there? Three of these committees are Governance Committees. List these committees and the chairperson of each during fiscal 2020. Two are these committees are Strategy Committees. List these committees and the chairperson of each during fiscal 2020? Who are the members of the Executive Committee? Answer: (5 points) Provide a breakdown of fees paid by the Company to its independent registered public accounting firm for services provided in fiscal 2020 and fiscal 2019 by completing the table below. What is included in a) “Audit-Related Fees” and b) “All Other Fees”? Answer the last two questions below the table. Answer: Type of feeFees paid in Fiscal 2020Fees paid in Fiscal 2019 Commentary: FORM 8-Ks (5 points)On June 5, 2020 the Company filed a Form 8-K with the SEC that announced the results of shareholders’ voting at the Company’s 2020 virtual annual shareholders’ meeting. How many of the 11 persons nominated for election as directors were elected? List the three other company proposals and indicate whether each was approved or rejected. Finally, list the four shareholder proposals and indicate whether each approved or rejected. Answer: (5 points)On November 17, 2020 the Company filed another Form 8-K with the SEC. What was the purpose of the Form 8-K or put another way, what is discussed in this Form 8-K? STOCK.WALMART.COM: Look in the “Corporate Governance” section (4 points) Walmart’s ethical values are guided by its “beliefs” that guide the Company’s decisions and leadership. Identify and describe each of these beliefs. Answer: (3 points) Briefly describe the Code of Ethics for the CEO and senior financial officers. Answer: (3 points) In its Procedures for Complaints Related to Accounting or Audit Matters, what is included in “Accounting Matters”? What are the options for reporting a complaint regarding Accounting Matters? Answer:


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