preview

Essay about (Wal-Mart) Global Environments

Good Essays

(Wal-Mart) Global Environments
Study Name
COURSE
Date
Professor

Wal-Mart Global Environment
Wal-Mart continues to grow its empire by reviewing many factors. These factors include price, production, and composition inputs. Wal-Mart must also analyze if global competition affects Wal-Mart, and if the company should continue, expand, or reduce its current operations to maximize profits. Wal-Mart continues to analyze the effects of government policy, social diversity, and business ethics. For Wal-Mart to make a smart decision, one must begin by reviewing price recommendation. Team “A” also will show how Wal-Mart debt securities reports show on the financial statements, how Wal-Mart invest in stocks and debt securities. The team will go …show more content…

In subsequent years, the income from the subsidiary attributable to Wal-Mart Stores, Inc is recognized in the consolidated accounts.
In companies where interest owned is between 20% and 50%, Wal-Mart Stores, Inc uses the equity method to account for the investment. Wal-Mart Stores, Inc recognizes income from such investments on the basis of the level of control. The income or loss is included in the consolidated accounts under other income. As at December 31, 2010 and 2011, this income was 400m and 450m, respectively. The value of the investment is adjusted annually to reflect the share of income recognized but not received as dividends. The company accounts for investments with less than 20% interest using the cost method.
The company’ Financial Health
The company will determine its financial health using its financial performance and financial position. This is shown by the profitability statement for the year under review, and its financial statement. The performance and financial position are measured using the accounting ratios. The raw data from the income statements for the four years 1009, 2010 and 2011 indicate progressive improvement over time. The table below illustrates the observation.

| 2012 | 2011 | 2010 | 2009 | Operating Results | | | | | | Net sales | $443,854 | $418,952 | $405,132 | $401,087 | |

Get Access