Wal-Mart - Accounting Information Systems

Sam Walton began Wal-Mart in Rogers , Arkansas . Today , there are nearly 6 ,500 stores in 15 countries . Argentina , Brazil and Japan are only three of the 15 countries that can boast a Wal-Mart store

Wal-Mart is currently ranked second on the Fortune 500 list , second only to Exxon Note , all numbers in millions

a ) Wal-Mart had a good year , evidenced by an increase in net sales of 27 ,205

b

1 ) 2006 : the sales revenue is 312 ,427 , minus the cost of goods sold 312 ,427- 240 ,391 equals a gross profit

of 72 ,036 . The gross profit percentage is the gross profit , times 100 7 ,203 ,600 ) divided by the gross revenue of 315 ,654 , which equals 22 .82

2005 : sales revenue is 285 ,222 , minus cost of goods sold 285 ,222 - 219 ,793 ) equals a gross profit of 65 ,429 , and the gross profit percentage is the gross profit of 65 ,429 times 100 6 ,542 ,900 divided by the gross revenue of 288 ,132 equals a gross profit percentage of 22 .70

While sales have increased , gross profit percentage has remained the

same . This indicates that costs are increasing at the same rate as sales . If

this trend of rising costs continues , then Wal-Mart needs to either

increase sales or manage its costs in to increase its profit

percentage . This trend is favorable in that the gross profit did not

decrease , but unfavorable in that Wal-Mart is a quickly growing

company and the gross profits should be increasing , not staying the same

2 ) Wal-Mart uses the LIFO (last in , first out ) method

3 Stock Ratings MSN Money : Recommends hold . Performance : up 29

Smith Barney : Recommends hold Performance : up 29

E-Trade : Recommends hold Performance : up 29...