Brad Final Paper ACC205 - Investment Choices of Walmart 1...

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Investment Choices of Walmart1Investment Choices of WalmartBradley D ColsonACC205 Principles of AccountingInstructor Renee SinclairJanuary 9, 2017
Investment Choices of Walmart2When deciding whether to open a business or to invest in business, there are so many variables to consider. Even determining what type of activity to open will take some critical thought. Of course, the primary purpose of a business is to make money and provide a viable good or service to the consumer market the company is targeting. Longevity is something many small businesses fail to attain. Keeping your business in the black and continuing to grow are critical and will help to attract investors. A businesses financial accounting will contribute to showing the good and bad that a company has gone through. These documents will show investors what their potential gains could be if they choose to invest. The company that will analyze for these purposes will be Walmart. Walmart is an enormous company that plays a significant role in the buying of most families in the United States. To show how Walmart is doing as a business several financial documents will be created. The horizontal analysis of a business' balance sheet and income statement are part of the financial information needed to determine the risk/reward potential for investors and the overall strength of the company, as well as the current ratio, quick ratio, cash to current liabilities ratio. Wal-Mart is a massive retailer that spans 27 countries with its 11,100 locations. The Walton’s founded it and incorporated on October 31, 1969, in Delaware (marketrealist.com, 2015). Walmart headquarters are in Bentonville, Arkansas. Walmart’s operation is conducted in a couple of segments: Walmart International, Sam’s Club and Walmart U.S. The US segment chain operates in 50 states in retail stores in the United States. The membership warehouse clubs that works in 48 states in the United States and Puerto Rico, as well as digital retail is Sam’s Club In February of 2015, the company had reported making
Investment Choices of Walmart3$483 billion worldwide in the 12 previous months. This is one of the reasons it is ranked in the top ten businesses in the S&P 500 Index (SPY). Although Walmart has become a massive worldwide retailer, it only began its international reach in the 1990's with its first store in Mexico(marketrealist.com, 2015). Some of the other countries Walmart now calls home include; the United Kingdom, Brazil, and Africa. With the first stores carrying things like housewares and clothes, they have erupted with taking a broad range of merchandise in the Walmart Superstores. These stores sell everything you couldimagine. They still stock clothes and housewares but have also moved into groceries, electronics and beauty products. Walmart has paved the way for other retail supercenters such as Meijer andTarget. These stores also started with smaller locations and branched out into carrying other products.

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