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Walmart Financial Statement

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C. Effects on Financial Statements The $2,000,000 income increase has both positive and negative effects on Wal-Mart Stores, Inc.’s financial statements. Starting on the Income Statement is the $500,000 increase in Net Sales and the remaining $1,500,000 increase goes into Membership and Other Income. Total Revenues, therefore, increase to $484,130,000 and Operating Income increases from $24,105,000 to $26,105,000. Provision for Incomes Taxes under Current is also adjusted to for the new tax calculation of $8,284,000. After subtracting Total Provision for Income Taxes of $7,258,000 from Income from Continuing Operations before Income Taxes, Income from Continuing Operations is $16,380,000. There is nothing documented as Income for Discontinued Operations, so the $16,380,000 is also the new Consolidated Net Income. The $16,380,000 is added to the Statement of Shareholder’s Equity and Other Comprehensive Income, Net of Income Tax of …show more content…

It is assumed that the income has been recognized as either Cash or Accounts Receivable, so there is a $500,000 increase in Cash to bring the total up to $9,205,000. Merchandise Inventory decreased by the same $500,000 due to the matching principle of revenue recognition. After accounting for all adjustments made to Asset accounts, the new Total Assets account total is $199,581,000. The remaining $1,500,000 income increase is considered Unearned revenue from Deferred Membership Dues that will be recognized once payments become due. The Accrued Liabilities account is increased from $19,607,000 to $21,107,000. Accrued Income Taxes also increased based on a rough estimate of the past year’s figures to $1,021,000. Current Liabilities increased to $66,619,000 and Retained Earnings decreased to $85,163,000. Accumulated Other Comprehensive Income (Loss) decreased to $10,739,000 and Total Liabilities and Equity equal $199,581,000 (Annual Report 2016

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