Finance -AW-Q84 Online Services
In 1962 Sam Walton opened the first Walmart store in Rogers, AR. In 1970 Walmart went public and was able to expand thecompany. As the company grew, so did Mr. Walton’s vision for the organization. He expanded the company outside the U.S.; he brought in newmethods and technology into the retail business. “George H. W. Bush presented Mr. Walton with the Presidential Medal of Freedom” in 1992 because of his dedication to the service industry and his drive to help others(“Our History”, 2016).
By January 2016 Walmart’s net income was $14,694,000.00 which is lower than the previous year of $16,363,000.00 that is $1,669,000.00 less than the past year. There are many things can affect the organization’s net income to drop. One of the major factors that could be affecting the companies is that it has not done well with their internet sales, they have changed the way they operate by losing focus on net sales, reducing operatingcosts, and stores closing or not being accepted in certain regions or cities(Banjo, 2016).
The shareholder’s equity for Walmart was $80,546 on January 31, 2016. One of the reasons possible for labor unions to be interested in the shareholder’s equity is that labor unions may well ask ofexecutive board to decrease the shares that are disbursed to the investors and to raise wages of employee’s or to have better benefits. Labor unions ensure that the profits of the organization are not just for the stockholders, but that employees will get their fair share by giving employees better wages. They give the employee voice.
The total assets were $199,581,00.00 by January 31, 2016. The previous year’s total assets were $203,490,000.00. That is down by $3,909,000.00. Banks and other creditors look at the financial stability of the organization when they are taking on new obligations. Assets protect the creditor’s interest in case the organization does not have enough cash to meet their obligations. Assets provide something of value creditors so that they can sell off these assets, and protect their cash value(Kokemuller, n.d.).
The cash flows-operating activities for depreciation were $9,454,000.00. The net income adjustment was $738,000.00. Changes in operating for the net cash flow was $27,389,000.00 in January 2016. The income statement is the most important financial statement because it shows how the organization uses its resources. The financial statement also shows the position of the company (“WMT Company Financials”, 2016).
Currently, these types of financial are not essential for my position. I used to do accounts payable, had I stayed in that position more than likely I would have to learn all about financial statements. I do not have any desire to be doing accounting; it is very a very demandingoccupation. It is important for anyone in a manager’s position to understand the importance of financial statements. These statements will show how a company is performing financially and will show cash flow, trends, how they spend money, and if they are making a profit.
Walmart has been around for a long time, but if they plan to continue to stay, and be a competitive organization they will need to make some changes. They survived the business recession in 2007, but will need to update their business practices. Their financial statements show a decline in their net income by $1,669,000.00 from 2015. The organization great values for shoppers, but all accept them due to their business practices, long working hours, and low wages.
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