Question

Use Walmart’s income statement and cash flow statement for the year ending January 31, 2020 to calculate Walmart’s free cash flow. Continue to assume that the tax rate was 21 percent and that deferred taxes relate to operating activities

Walmart's Cash Flow Statement for 2020 Consolidated net income Depreciation and amortization Deferred income expense (Gains) losses on disposals of assets and businesses, net Other operating (income) expense, net Decrease increase) in accounts receivable Decrease increase) in inventories Increase/(decrease) in accounts payable Increase/(decrease) in accrued liabilities Increase/(decrease) in accrued income taxes Net cash provided by operating activities 2020 15,201 10,987 320 15 -941 154 -300 -274 186 -93 25,255 Payments for property and equipment Proceeds from disposal of property and equipment Acquisitions, net of cash acquired Proceeds from disposals of businesses, net Other investing activities Net cash used by investing activities -10,705 321 -56 833 479 -9,128 Net change in short-term borrowings Payment of long-term debt Proceeds from issuance of long-term debt Purchase of Company stock Dividends paid Other financing activities Net cash (used in)/provided by financing activities Effect of exchange rate changes on cash Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 4,656 -1,907 5,492 -5,717 -6,603 -908 -14,299 -69 1,759 7,756 9,515

Answer 1

61 62 63 64 Net Cash Provided by Operating Activities Add Interest Paid ,net of Tax (2410-2410*21%) Less Payment for Property and Equipment Add Proceeds from disposal of Property & Equipment Walmart's free cash flow 25,255 1,904 -10,705 321 16,775 65 66 67 68 69 70 71