Sears

Balance Sheet

Assets
Current Assets
Cash and cash equivalents
Retained interest in transferred credit card receivables
Credit card receivables
Less: Allowance for uncollectible accounts
Other receivables
Merchandise inventories
Prepaid expenses and deferred charges
Deferred income taxes
Total current assets
Property and equipment
Land
Buildings and improvement
Furniture, fixtures and equipment
Capitalized leases
Less: Accumulated depreciation
Total Property and equipment, net
Deferred Income Taxes
Other assets
Total Assets
Liabilities
Current Liabilities
Short-term borrowings
Current portion of LT debt and capitalized obligations
Accounts payable and other liabilities
Unearned revenues
Other taxes
Total current liabilities
Long-term debt and capitalized lease obligations
Post-retirement benefits
Monthly interest and other liabilities
Total Liabilities
Shareholder's equity
Common shares ($0.75 per value, 1,000 shares aut. 390.9 & 391.4 out.)
Capital in excess of par value
Retained income
Treasury stock-at cost
Minimum pension liability
Deferred ESOP expense
Cumulative translation adjustments
Total Shareholder' equity

1997

VA (1997)

358
3316
20956
-1113
19843
335
5044
956
830
30682

0.9250646
8.5684755
54.149871
-2.875969
51.273902
0.8656331
13.033592
2.4702842
2.1447028
79.281654

487
5420
4919
498
11324
-4910
6414
666
938
38700

1.2583979
14.005168
12.710594
1.2868217
29.260982
-12.68734
16.573643
1.7209302
2.4237726
100

5208
2561
6637
830
554
15790
13071
2564
1413
32838

13.457364
6.6175711
17.149871
2.1447028
1.4315245
40.801034
33.775194
6.625323
3.6511628
84.852713

323
3598
4158
-1702
-217
-204
-94
5862

0.8346253
9.2971576
10.744186
-4.397933
-4.166667
-0.527132
-0.242894
15.147287

Total Liabilities and Shareholder's equity

38700

100

1447
976

3.1883483
2.1505376

16845
-348
16497
432
19352

37.116605
-0.76679
36.349815
0.9518773
42.640578

4691
14646
7636
403
27376
-5907
21469

10.336242
32.271285
16.825313
0.8879781
60.320818
-13.0156
47.305218

3040
-903
2137
2426
45384

6.6983959
-1.989688
4.7087079
5.3454962
100

9126
3628
565
1039
102
14460
7191
2483
809
1938
26881

20.108408
7.9940067
1.2449321
2.2893531
0.2247488
31.861449
15.844791
5.4710911
1.7825665
4.2702274
59.230125

224

0.493566

Wal-Mart
Balance Sheet
Assets
Current Assets
Cash and cash equivalents
Receivable
Inventories
at replacement cost
Less: LIFO reserve
Inventories at LIFO Cost
Prepaid Expenses and other
Total Current Assets
Property, plant and equipment, at cost
Land
Building and equipment
Fixtures and equipment
Transportation equipment
Less: Accumulated depreciation
Net PPE
Property under capital lease:
Property under capital lease
Less: Accumulated depreciation
Net property under capital lease
Other assets and deferred charges
Total assets
Liabilities and Shareholder's equity
Current Liabilities
Accounts payable
Accrued Liabilities
Accrued income taxes
Long;term debt due within one yr
Obligations under capital leases due within one yr
Total current liabilities
Long-term debt
Long-term obligations under capital leases
Deferred income taxes and other
Minority interest
Total Liabilities
Shareholder's equity
Preferred stock
common stock

Capital In excess of par value

Retained earnings
Foreign currency translation adjustment
Total Shareholder's equity
Total Liabilities and shareholder's equity

585
18167
-473
18503
45384

1.2890005
40.029526
-1.042218
40.769875
100

1996

VA (1996)

HA

660
2260
20104
-801
19303
335
4646
348
895
28447

1.824868
6.24879
55.58658
-2.21473
53.37186
0.926259
12.84596
0.962203
2.474632
78.65457

-45.7576
46.72566
4.237963
38.95131
2.797493
0
8.566509
174.7126
-7.26257
7.856716

The company was heavily focusing on their credit sales that they failed to re

445
5080
4279
433
10237
-4359
5878
905
937
36167

1.230403
14.04595
11.83123
1.197224
28.30481
-12.0524
16.25238
2.502281
2.59076
100

9.438202
6.692913
14.95677
15.01155
10.61835
12.64051
9.118748 Managed by the new CEO of Sears, they had an idea of expanding their faci
-26.4088
0.106724
7.003622

3533
2737
7225
840
615
14950
12170
2748
1354
31222

9.768574
7.567672
19.97677
2.322559
1.700445
41.33602
33.64946
7.598087
3.743744
86.32731

47.41013 Having the idea of expanding their business and their facilities, Sears was de
-6.4304
-8.13841
-1.19048
-9.9187
5.618729
7.403451 see Q29
-6.69578
4.357459
5.175838

323
3618
3330
-1655
-277
-230
-164
4945

0.893079
10.00359
9.207288
-4.57599
-0.76589
-0.63594
-0.45345
13.67269

0 The company did not acquire new equity to maintain their holdings over the
-0.55279
Financing with more debt would also mean that thy can lower th
24.86486
See P13, P23 and P33?
2.839879
-21.6606 Decreasing their employment benefit plans?
-11.3043
-42.6829
18.54398

Sears was able to increase their credit cards sales due to their competitive m
However, due to the risk associated with the program and their policy, they

36167

100

7.003622

883
845

2.229573
2.133623

63.87316 Walmart realized a lot of cash from their operations and it helped them fina
15.50296 Offering more 3rd party credit cards for their customers, they were able to

16193
-296
15897
368
17993

40.88728
-0.7474
40.13988
0.929199
45.43228

4.026431
17.56757
3.774297
17.3913
7.552937

3689
12724
6390
379
23182
-4849
18333

9.314716
32.12807
16.13473
0.956974
58.53449
-12.2437
46.29078

27.16183
15.10531
19.49922
6.332454
18.09162
21.81893
17.10577 They heavily invested on new non-curretn assets so that they can expand o

2782
-791
1991
1287
39604

7.024543
-1.99727
5.02727
3.249672
100

9.273904
14.15929
7.332998
88.50039
14.59449

7628
2413
298
523
95
10957
7709
2307
463
1025
22461

19.26068
6.092819
0.752449
1.320574
0.239875
27.6664
19.46521
5.825169
1.169074
2.588122
56.71397

19.63818
50.35226 As of the end of the year, they accumulated more accounts that have not ye
89.59732
98.66157 Many of their long-term debt need to be paid.
7.368421
31.97043
-6.71942 Having realized cash from their operations, they were able to pay-off some
7.628955
74.73002
89.07317
19.67855

228

0.575699

-1.75439

547
16768
-400
17143
39604

1.381174
42.33916
-1.01
43.28603
100

6.946984
8.343273
18.25
7.933267
14.59449

edit sales that they failed to realize a substancial increase in their cash balance but realized a significant decrease in it, followed by numer

ales due to their competitive marketing on the program.

program and their policy, they were faced with additional burden of not being able to collect the accounts from few of their customers.

an idea of expanding their facilities so that they can earn more revenues from different branches.

nd their facilities, Sears was dealt with the dilemma of either investing with debt or equity. The company chose to finance their capital ex

maintain their holdings over the company.

lso mean that thy can lower their taxes payable.

rations and it helped them finance their captial expenditures and payments of liabilities due. From this, we can say that they can effective
customers, they were able to realize more sales.

ets so that they can expand on their operations.

more accounts that have not yet been paid.

ey were able to pay-off some of their debt.

decrease in it, followed by numerous accounts being due and acquisition of equipment for its expansion.

nts from few of their customers.

y chose to finance their capital expenditures with debt. Whether it was a short-term or a long-term borrowing, this was the source to cap

we can say that they can effectively manage their cash from the following circumstances

owing, this was the source to capitalize on their undertakings.