Answer to the requirement 1

Examining the leading retailers of United States, it can be analysed that, the business had a deferred tax assets of $ 1,281 in the FY 2016 and increased to $ 1,358 in the next financial year of 2017. These deferred expenses were the expenses that has made in advance. According to the footnotes of the deferred taxes, it can be seen that, the deferred assets were not deducted in the current financial year. The deferred liabilities in the current year were property and equipments (Wang et al., 2016). Other deferred liabilities included are inventories. The deferred liability was found to be $1,822 in the year 2017, which was $ – 1790 in the FY 2016. These deferred liabilities is more than the actual assets. The net deferred liability was found to be -825 and the total gross deferred liability is found to be -2,106. This indicates that, the company had sell more equipment in meeting the target (Widiatmoko et al., 2016).

Answer to the requirement 2

It can be noticed from the footnotes of the company’s annual report that, the company has done various changes in inventories in order to maintain the services of the company’s inventories. It has also done various changes in account receivables and vendor management in order to meet the current trends of the company (Brilha, 2016). The company is more focused to meet the requirements of the customers, in order to maintain customer requirement. But, looking at the retail business of Walmart, it can be seen that the company is not focused on methods of selling, but only emphasis on selling a bulk of items to the customers (Glick et al., 2018). The Chief Executive Officer has mentioned that, the company has invested a huge sum of money in research and developments centre in order to study the business market of Walmart Kmart and achieve the target.

Answer to the requirement 3

According to the income statement of the FY 2016, the income tax provision was $ 1,296. It can be seen that, there is a decrease in the income tax provisions in this year as compared to previous data (Donelson et al., 2016). It was found to be $1,602 in the FY 2014, $ 1,204 in the FY 2013, $1,427 in the FY 2012. The company has targeted to achieve a 100 percent increase in every year, from these income.

Answer to the requirement 4

The company has a defined benefit of plan. It can be seen from the footnotes that, the team members were allowed to contribute 401(k) to match the target of 80%. This target was authorized by the state regulations (Oudshoorn et al., 2018). The team members satisfying the eligibility criteria contributed 5% of the retail top match the target of 100%. They look towards a greater deal of the business in order to achieve a career growth.

Answer to the requirement 5

The income statement has disclosed various earnings per shares like GAAP earnings, adjusted earnings per share, sales and earnings from securities. (Anuonye, 2015). The GAAP earnings per share were found to be $4.58. Adjusted earnings per share was $5.01. Comparing the sales from the goods, it can be seen that there is decrease in 0.5 percent of sales in the business. The range of diluted securities was 0.5% to 0.9% from the FY 2015 to 2017. The earnings from diluted securities were doubled in the FY 2017.

Answer to the requirement 6

The company has deferred compensation as a share-based compensation system. The deferred compensation was less than the previous five financial years. This compensation is received was received by the ordinary stockholders and preferred stockholders of the company. According to the previous two years data, it can be seen that, the company has acquired $250 million as deferred compensation. From the footnotes mentioned in the annual report, the deferred compensation has an unauthorized shares were a total of 5,00,000 numbers and the par value of each share is $0.01(Kim et al., 2015). The company has not issued any shares or shares outstanding at the beginning of the year January 28, 2017 and January 30 of 2016.

Answer to the requirement 8

The company has used direct cash flow presentation method. The company has done major investments in technologies & pharmacy. It mainly focuses on expanding their business in these sectors (Boularhmane et al., 2016). This allows the company to easily target the other retail stores like Walmart. The cash flow statement shows the changes of the company’s balance sheets and income statement due to the change in different cash flow statement in the business. Thus, the cash flow agrees to the company’s financial statement (Yu, 2016).

Answer to the requirement 9

The company does major of its investments in technology and pharmacy sectors. By focusing on the short-term notes payable and net-gain from the investments, the short-term notes payable in 2016 was $1,110 million, $ 3008 million in 2015, $1520 million in 2014, $3million in 2013 and $75 million in FY 2012. These values indicates the level of financial leverage exists in the company (Klychova et al., 2019). The short-term investments are used to pay the short-term debt obligations of the business.

Answer to the requirement 10

The company has following non-cash transactions:

Insurance liabilities, tax-exempted and comprehensive transactions. There was a loss of around $2,728 million of comprehensive income in the current financial year. These incomes were not used for any community projects of the business (Pastusiak et al., 2017). This income will help the company from paying tax for the next three years. The company is doing best in managing the cash flow statement in order to achieve the target.

References

Anuonye, N. B. (2015). Intellectual capital measurement: using the earnings per share model of quoted insurance companies in Nigeria. International Business and Management, 10(1), 88-98.

Boularhmane, I., & Aboulaich, R. (2016). Valuation of quarterly stock prices: applying ethical principles to discounted cash flow method. International Journal of Economics and Financial Issues, 6(3), 1254-1261.

Brilha, J. (2016). Inventory and quantitative assessment of geosites and geodiversity sites: a review. Geoheritage, 8(2), 119-134.

Donelson, D., Koutney, C., & Mills, L. (2016). Nonrecurring income taxes: Do analysts and investors identify and adjust for transitory tax expense items. Working paper, University of Texas at Austin.

Glick, P., & Fiske, S. T. (2018). The ambivalent sexism inventory: Differentiating hostile and benevolent sexism. In Social Cognition (pp. 116-160). Routledge.

Kim, J. W., Kogut, B., & Yang, J. S. (2015). Executive compensation, fat cats, and best athletes. American Sociological Review, 80(2), 299-328.

Klychova, G., Zakirova, A., Mannapova, R., Pinina, K., & Ryazanova, Y. (2019). Assessment of the efficiency of investing activities of organizations. In E3S Web of Conferences (Vol. 110, p. 02075). EDP Sciences.

Oudshoorn, C., & De Vries, C. G. (2018). Sluggish growth in the Eurozone: Secular Stagnation versus Balance Sheet Recession.

Pastusiak, R., Jasiniak, M., & Grzelczak, M. (2017, December). The Significance of Non-Cash Turnover in Economic Growth. In CONFERENCE FULL-PAPER PROCEEDINGS BOOK (p. 103).

Wang, Y., Butterfield, S., & Campbell, M. (2016). Deferred tax items as earnings management indicators. International Management Review, 12(2), 37-42.

Widiatmoko, J., & Mayangsari, I. (2016). The Impact of Deferred Tax Assets, Discretionary Accrual, Leverage, Company Size and Tax Planning Onearnings Management Practices. Jurnal Dinamika Manajemen, 7(1), 22-31.

Yu, C. (2016). The Role of Direct Method Operating Cash Flow Disclosures in a Voluntary Setting (Doctoral dissertation, University of New South Wales).