The solution is on page 3 49 walmart income statement

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The solution is on page 3-49. WALMART Income Statement ($ millions) For Fiscal Year Ended January 31, 2011 Net sales , . Membership and other income . Revenues, total. . Costs and expenses Cost of sales . Operating, selling, general and administrative expenses . Operating income . Interest Debt .............................................. .... •. Capital leases . Interest income . Interest, net . Income from continuing operations before income taxes . Provision for income taxes Current . Deferred . Provision for income taxes, total . Income from continuing operations . Income (loss) from discontinued operations, net of tax . Consolidated net income . Less consolidated net income attributable to noncontrolling interest . Consolidated net income attributable to Walmart . 'OA relates NOPAT to the average net operating assets (NOA) of the company. We compute OA as follows:
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3-9 Module 3 I Profitability Analysis and Interpretation Current liabilities Short-term notes and interest payable Current maturities of long-term debt Accounts payable Accrued liabilities Unearned revenue Deferred income tax liabilities Current liabilities of discontinued operations To compute NOA we must partition the balance sheet into operating and nonoperating items. Exhibit 3.2 shows a typical balance sheet and highlights the operating items. Operating and Nonoperating Items in the Balance Sheet Typical Balance Sheet Operating Items Highlighted Current assets Cash and cash equivalents Short-term investments Accounts receivable Inventories Prepaid expenses Deferred income tax assets Other current assets Current assets of discontinued operations Long-term assets Long-term investments in securities Property, plant and equipment, net Capitalized lease assets Natural resources Equity method investments Goodwill and intangible assets Deferred income tax assets Other long-term assets Long-term assets of discontinued operations Long-term liabilities Bonds and notes payable Capitalized lease obligations Pension and other post-employment liabilities Deferred income tax liabilities Long-term liabilities of discontinued operations Stockholders' equity All equity accounts Noncontrolling (minority) interest Operating assets are those assets directly linked to operating activities, the company's ongo- ing (continuing) business operations. They typically include receivables, inventories, prepaid expenses, property, plant and equipment (PPE) , and capitalized lease assets, and exclude short- term and long-term investments in marketable securities and any current and noncurrent assets that relate to discontinued operations. Equity investments in affiliated companies and goodwill are considered operating assets if they pertain to the ownership of stock in other firms linked to the company's operating activities (see Module 9). Deferred tax assets (and liabilities) are oper- ating items because they relate to future tax deductions (or payments) arising from operating activities (see Module 5). We assume that "other" assets and liabilities, and "other" revenues and expenses, are operating unless information suggests otherwise. For example, details in
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