This Paper Is an Overview of Wal-Mart’s Annual Report

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Assignment 1: Annual Report Project Due week 8 Darrin Ingraham 08/15/2012 ACCT 100 – Introduction to Accounting Instructor: Professor Jerome Newman Abstract This paper is an overview of Wal-Mart’s Annual Report. The purpose of a corporate annual report is to communicate to stockholders and other interested parties its financial statements. The annual report is a summary of the corporation’s operations over the previous 12 month time period and states the corporation’s plans for the future. Many annual reports are created to resemble a corporate brochure, using lots of pictures, color, charts and graphs. Despite the fancy look, the main purpose of the report is to provide the year’s financial data, which comes…show more content…
The owner’s equity is listed as the Shareholder’s Equity, and it comes from two main sources. The first and original source is the money that was originally invested in the company, along with any additional investments made thereafter. The second comes from retained earnings which the company is able to accumulate over time through its operations. In most cases, the retained earnings portion is the largest component. Overall, it is the total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Wal-Mart’s Shareholders' Equity represents the amount by which the company is financed through common and preferred shares. Wal-Mart’s Preferred stock ($0.10 par value; 100 shares authorized, none issued)and the Common stock ($0.10 par value; 11,000 shares authorized, 3,418 and 3,516 issued and outstanding at January 31, 2012 and 2011, respectively) totals $342,000,000. The Retained Earnings totals $68,691,000,000. “The Company’s shareholder-approved Stock Incentive Plan of 2010 (the “Plan”) became effective June 4, 2010 and amended and restated the Company’s Stock Incentive Plan of 2005. The Plan was established to grant stock options, restricted (non-vested) stock, performance shares and other equity compensation awards for which 210 million shares of common stock issued or to be issued under the Plan have been registered under

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