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Walmart Financial Statement Analysis Essay

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Discussion Board # 1 Johan Rivera Liberty University Wal-Mart’s financial statement provides detailed information of the company’s financial health. In a comparison between the financial statements presented in the book “Accounting For The Rest Of Us” and Wal-Mart’s financial statement, it was found several areas where they differ. One of the main differences is the information provided in each financial statement. Wal-Mart’s financial statement provides an innumerous amount of details that the other statements are missing. One of the major differences is that Wal-Mart’s statement includes the national and international company plus the subsidiary company. The statement of the textbook just concentrates in a private company. Furthermore, The Company offers detailed information about the increase or decrease of the operating …show more content…

Additionally, Wal-Mart’s statement covers the last five years, where the book only presents a monthly statement. By Wal-Mart exposing the financial statement of the last five years in the same document, allows prospective and current investors to obtain an official report of the company’s financial health and how is progressing from one year to the other. This action is an advantage to the company because investors are attracted and more interested in companies that are constantly growing from one year to the other. “Investors are willing to pay more for the stock of a company because they expect it to reach a higher value than its sales revenue shows”(Corona, 2014). Wal-Mart has created a strategy to target low-income individuals. The pay wage gab between average employees and executives is continually growing and the cost of living is augmenting rapidly. These events are continually increasing Wal-Mart’s profits every year and investors are aware of it. “In the case of Wal-Mart, investors are willing to pay 18% more for its stock compared with actual sales revenue, based on the expectation

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