Financial Reporting Problem Argumentative
A limited time offer! Get a custom sample essay written according to your requirements urgent 3h delivery guaranteedOrder Now
Walmart is one of biggest international corporations all over the world. According to the Fortune Global 500 in the year of 2014, Walmart is the number one biggest public company. Wal-Mart serves millions of customers in 27 countries. Walmart’s total assets at the end of its most recent annual reporting period are 204,751,000.00 dollars. Total assets states the total amount of assets owned by a company. Information about total assets is important because this information shows the financial worth of a company, whether those assets are long term or short term, cash or property. This information can be important to a variety of people, including the finance department, investors, potential investors, the board of directors, and the CEO. The total assets at the end of the previous annual reporting period were 203,105,000,000.00 dollars which is less than it was in the last annual reporting period. The financial worth of the company grew 1,646,000,000.00 dollars in one year. Cash and cash equivalents are either cash or assets that are readily convertible into cash.
Cash and cash equivalents are: currency, coins, checks and money orders received from customers, petty cash, savings accounts, checking accounts, money market accounts, and short-term, highly liquid investments with maturity dates no longer than three months from the date of purchase such as U.S. treasury bills. At the end of their most recent annual reporting period Walmart had 7,281,000,000.00 dollars, which is less than the previous year. An account payable is an accountability to a supplier or vendor for services or products that were delivered in advance of payment. If the company will not pay accounts payable within the payment terms agreed to with the supplier, the payables are considered to be in default, and that can cause a fine or interest payment, or the cancelation or restriction of additional credit from the supplier. According to Walmart’s annual report at the end of its most recent annual reporting period the company had 37,415,000,000.00 dollars in account payable.
The year before that Walmart had 38,080,000,000.00 dollars in account payable. In 2014 the revenue of Walmart was 476,294,000,000.00 dollars. In 2013 Walmart’s revenue was 468,651,000,000.00 dollars, and in 2012 Walmart reported that their revenue was 446,509,000,000.00 dollars. Walmart’s revenue has been growing every year. The net income of a company is the income after all expenses and taxes have been deducted. Net income is often referred to as the bottom line, because it is found on the last line of the income statement. Net income in the most recent annual reporting period was 16,695,000,000.00 dollars, and in a previous annual reporting period it was 17,756,000,000.00 dollars. The change in dollars in the company’s net income from its most recent annual reporting period to the previous annual reporting period is negative 1,061,000,000.00 dollars. A current asset is cash or any assets that can be reasonably transformed to cash within one year.
“Current assets are also referred to as short term assets”, (Averkamp, H. 2014). Walmart’s total current assets at the end of its most recent annual reporting period were 61,185,000,000.00 dollars. The total current assets at the end of the previous annual reporting period were 59,940,000,000.00 dollars. An annual report can give a lot of important information about a company. Public companies provide plenty of financial information to investors. Examining these documents closely is one of the ways for investors to get a better grasp on what is going on with the company to which they have invested their money. An annual report shows what the company has done and what it can do, which can give future investors an idea about a company and if it is worth the time and money to invest into it.
Employees, like Managers who plan, organize, and run a business and are responsible for making decisions and formulating plans and policies for the future need an annual report of their company to make informed business decisions. An annual report is important for employees, because it allows them to find out if they are working for a progressive company that can offer them a safe future and job opportunities, or if they are working for a company that is in a downward spiral and should begin looking for employment elsewhere. Walmart has been operating since 1962, and currently employs 2.2 million associates worldwide.