WALMART CONSOLIDATED BALANCE SHEETS as of January 31 all amo

WAL-MART CONSOLIDATED BALANCE SHEETS (as of January 31) (all amounts in US$ millions) 2009 2010 ASSETS Current assets: Cash and cash equivalents Accounts receivable Inventories Prepaid expenses and other Current assets of discontinued operations 7,2757,907 3,9054,144 34,51133,160 3,0632,980 195 Total current assets 48,94948,331 Property, plant and equipment (PPE) Land (property) 19,85222,591 105,968 115,257 32,964 38.304 92,85699,544 2,7972,763 15,26016,126 3,5673,942 Plant and equipment (PE) Less: accumulated depreciation Net PPE Net property under capital leases Goodwill Other assets Total assets LIABILITIES AND EQUITY Current liabilities: 1,506 523 28,84930,451 18,78920,099 5,8484,050 346 92 55,39055,561 31,34933,231 3,2003,170 6,0145,508 307 67,07972.929 Short-term borrowings Accounts payable Accrued liabilities and income tax Current maturities of long-term debt Obligations under capital leases due within Current liabilities of discontinued operations 315 83 Total current liabilities Long-term debt Long-term obligations under capital leases Deferred income taxes Minority interest Shareholders\' equity Total liabilities and equity 397

Solution

To calculate the dividend Yield we need to know the total dividend paid in the year 2010. The total dividend paid in the year 2010 for Wal-Mart from Yahoo Finance = $1.09

The share price of Wal-Mart at the beginning of 2010 = 43.01

The price of Wal-Mart on Dec 31, 2010 = 46.18

Data has been obtained from Yahoo! Finance

Dividend Yield for 2010= Dividend paid/ start of year price = 1.09/43.01 = 0.0253 = 2.53%

Capital Gains yield for 2010 = (46.18-43.01)/43.01 = 0.0737 = 7.37%

From looking at the given balance sheet, we can say the liquidity is increasing because current liabilities is decreasing from 2009 to 2010 and at the same time current assets is increasing from 2009 to 2010. Therefore, the liquidity of the company is increasing.