Reference no: EM132211241

Question: Google Wal-Mart 2018 current anunual report & Target 2017 year closing, having trouble posting charts on this site.

Can you be please be more specific on what information you need?

Complete a comprehensive analysis of Wal-Mart and Target for the most recent fiscal year, use Walmart 2018 annual report and Target 2017 closing annual report.

The goal of this module's project is to perform vertical analysis of the balance sheet and income statement, assess cash flows and determine market capitalization.

1. Balance Sheet Analysis. Prepare a common size balance sheet. To facilitate this, obtain the balance sheet in a spreadsheet such as Excel. Check with the sec.gov Website as many companies file their financials in spreadsheet form; look for the “Interactive Data” link on the search results page. Compare the two vertical analyses and look for major differences over time and between the companies. Some questions to consider:

- What are each company's largest assets? Largest liabilities?

- What proportion of total assets is financed by owners? (Hint compare with total equity)

- What proportion of total assets is financed by nonowners?

2. Income Statement Analysis. Prepare a common size income statement. Express each item on the income statement as a percent of total sales or revenue. Do this for all years on the income statement. Compare the vertical analyses and look for major differences over time and between the companies. Do any patterns emerge? Some questions to consider:

- What are the companies' major expenses?

- Are there any unusual or discontinued items? Are they large in magnitude?

- Which company is more profitable?

- Was each company more or less profitable when compared to the prior year?

3. Statement of Cash Flows Analysis. Determine the size and direction (cash source or use) of cash flows from operations, investing, and financing. One goal is to understand each company's pattern of cash flows and to form an opinion about the general strength of their cash flows. Some questions to consider:

- What were the companies' cash flows from operations? Were they positive?

- Were operating cash flows smaller or larger than net income?

- What are the major differences between operating cash and net income?

- Did the company purchase new property and equipment (‘Capital expenditures') during the years?

- Did the company issue new debt during the year or was the debt repaid? (Hint: We must sometimes sum one or more-line items on this statement to determine total net debt activity.)

- Did the company issue new stock?

- Did the company pay dividends?