Find difference between walmart cash flows and earnings

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Question: Cash Flow s for Walmart Stores (Easy) Walmart has been the most successful retailer in h istory. The panel below reports cash flows and earnings for the firm from 1988 to 1996 (in mill ions of dollars, except per-share numbers):

585_1988.png

The cash flows are unlevered cash flows.

a. Why would such a profitable firm have such negative free cash flows?

b. What explains the difference between Walmart cash flows and earnings?

c. Is this a good firm to apply discounted cash flow analysis to?

Reference no: EM131487072

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