ACC/290
Abstract
This weeks essay is a continuation of last weeks topic: Financial Reporting of Wal-Mart Corporation. The topics covered will fail the information contained in Wal-Marts balance sheet and income direction and discuss Wal-Marts assets listed under(a) the smart sets original assets list and whether or not they them in the proper order. alike covered is how these assets get classified. Breaking down these documents into the cash equivalents, the companys total menstruum liabilities at the end of its to the highest degree recent annual reporting period compared to their total current liabilities at the end of the previous annual reporting period. By placing further consideration on the information within these documents, we potful channelise how to make good use of this information and how grand it is to potential creditors, current investors, and prospective employees.
Financial Reporting Problem - Part II
The assets listed in Wal-Marts balance sheet show four main categories listed in the proper order of liquidity. Therefore, Wal-Mart listed their assets correctly, in the following order: Current assets, Property and equipment, Property under capital lease, and last, Goodwill and other.
The individual assets listed within the current assets, alike in order of liquidity; Cash and cash equivalents, Receivables, Inventories, prepay expenses, and Current assets of discontinued operations. The liquidity order is important to quite a little like potential investors, current loaners, and present management. Investors use the information to figure out if the company can change and hold to the market quickly if needed. When the company is applying for a loan or line of credit the lender can use the assets as a way of deciding if the company could repay. A lender knows that increased liquid assets can mean an increased receive of repayment. Assets tied up may take a age longer to sell and are less...If you want to get a full essay, order it on our website: Ordercustompaper.com
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