Crash Course in Accounting and Financial Statement Analysis, Second Edition

Overview

Review Exhibit 7.2 and identify the first section of Wal-Mart’s cash flow statement— cash from operations. This section represents how much cash a company generated (or lost) during the course of operations during the specified period.

Exhibit 7.2. Wal-Mart 2006 Cash Flow Statement

	Consolidated Statements of Income
	WAL-MART
(Amounts in millions)
Fiscal Year Ended January 31,				2006	2005	2004
Cash flows from operating activities
	Income from continuing operations			$ 11,231	$ 10,267	$ 8,861
Adjustments to reconcile net income to net cash provided by operating activities:
		Depreciation and amortization		4,717	4,264	3,852
Deferred income taxes		(129)	263	177
		Other operating activities		620	378	173
Changes in certain assets and liabilities, net of effects of acquisitions:
			Decrease (increase) in accounts receivable	(456)	(304)	373
Increase in inventories	(1,733)	(2,494)	(1,973)
			Increase in accounts payable	2,390	1,694	2,587
Increase in accrued liabilities	993	976	1,896
Net cash provided by operating activities of continuing operations				17,633	15,044	15,946
Net cash provided by operating activities of discontinued operation				—	—	50
Net cash provided by operating activities				17,633	15,044	15.996
Cash flows from investing activities
	Payments for property and equipment			(14,563)	(12,893)	(10,308)
Investment in international operations, net of cash acquired			(601)	(315)	(38)
	Proceeds fromnhe disposal of fixed assets			1,049	953	481
Proceeds from the sale of McLane			—	—	1,500
	Other investing activities			(68)	(96)	78
Net cash used in investing activities ...