Case Study Of Wal-Mart's Statement Of Cash Flows

Investor Relations

A. Investor Interest

From a financial perspective, I think it could be a wise decision to invest in Wal-Mart Stores, Inc. However, it is important to realize that all facts should be carefully explored making a decision. They could experience a positive fiscal year this year and a rather poor one next fiscal year. Upon review of the company’s Statement of Cash Flows, the net decrease of $430,000 is comparably small in comparison to the ending Cash balance of $8,705,000. The net income of $15,080,000 for fiscal year 2016 is a little less than the $16,814,000 net income received in fiscal year 2015, but the brand attributed the decrease to bad management decisions and lack of sales. Net cash provided by operating activities

Also known as the Statement of Cash Flows, the document is separated into three distinct sections: operating activities, investing activities, and financing activities. An additional section may be added to the financial statement which is often referred to as supplemental information. The purpose of the financial statement is to illustrate cash inflows and outflows that come from popular accounts like Accounts Receivable, Inventory, Accounts Payable, Equipment, and Bonds Payable. The resulting net increase or net decrease in Cash represents the difference between the beginning of the year and the end of the year (Statement of Cash Flows

to rethink its current strategy. With over 11,500 stores currently opened worldwide and the potential for 200 more, the company’s lease obligations and relating liabilities and expenses are increasing. The more stores that are opening increase the number of employees which in turn increases the amount of stocks purchased and dividends paid. There is always the option for Wal-Mart Stores, Inc. to join forces with another company to mitigate costs and deflect some of the risk to another party. Contributing capital from a similar company could help lower both company’s financial burden as well as create a new working relationship. Wal-Mart Stores, Inc. could also appeal to more investors to increase capital to lower costs of expansion (Annual Report 2016 2016) (Consolidated Statement of Cash Flows