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The balance sheet and disclosure of significant accounting policies taken from the January $31,2020,$ annual report of Walmart Incorporated appear below. Use this information to answer the following questions:

WALMART INCORPORATED

Consolidated Balance Sheets

$($$ in millions except per share data$)$

Amounts in millions As of January $31,$

$20202019$

Assets

Current assets:

Cash and cash equivalents $ $9,465$ $ $7,722$

Receivables, net $6,2846,283$

Inventories $44,43544,269$

Prepaid expenses and other $1,6223,623$

Total current assets $61,80661,897$

Property and equipment, net $105,208104,317$

Operating lease right$-$of$-$use assets $17,424$

Finance lease right$-$of$-$use assets, net $4,417$

Property under capital lease and financing obligations, net $7,078$

Goodwill $31,07331,181$

Other long$-$term assets $16,56714,822$

Total assets $ $236,495$ $ $219,295$

Liabilities and equity

Current liabilities:

Short$-$term borrowings $ $575$ $ $5,225$

Accounts payable $46,97347,060$

Accrued liabilities $22,29622,159$

Accrued income taxes $280428$

Long$-$term debt due within one year $5,3621,876$

Operating lease obligations due within one year $1,793$

Finance lease obligations due within one year $511$

Capital lease and financing obligations due within one year $729$

Total current liabilities $77,79077,477$

Long$-$term debt $43,71443,520$

Long$-$term operating lease obligations $16,171$

Long$-$term finance lease obligations $4,307$

Long$-$term capital lease and financing obligations $6,683$

Deferred income taxes and other $12,96111,981$

Commitments and contingencies Equity:

Common stock $284288$

Capital in excess of par value $3,2472,965$

Retained earnings $83,94380,785$

Accumulated other comprehensive loss $(12,805)(11,542)$

Total Walmart shareholders$$ equity $74,66972,496$

Noncontrolling interest $6,8837,138$

Total equity $81,55279,634$

Total liabilities and equity $ $236,495$ $ $219,295$

Source: Walmart

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS WALMART INCORPORATED

$1$ Summary of Significant Accounting Policies $($in part$)$

Cash and Cash Equivalents

The Company considers investments with a maturity when purchased of three months or less to be cash equivalents.

Inventories

The Company values inventories at the lower of cost or market as determined primarily by the retail inventory method of accounting, using the last$-$in$,$ first$-$out $($LIFO$)$ method for the Walmart U$.$S$.$ segment$$s inventories. The inventory at the Walmart International segment is valued primarily by the retail inventory method of accounting, using the first$-$in$,$ first$-$out $($FIFO$)$ method. At January $31,2020$ and January $31,2019,$ the Company$$s inventories valued at LIFO approximated those inventories as if they were valued at FIFO.

Revenue Recognition

The Company recognizes sales revenue, net of sales taxes and estimated sales returns, at the time it sells merchandise to the customer. eCommerce sales include shipping revenue and are recorded upon delivery to the customer. Customer purchases of shopping cards are not recognized as revenue until the card is redeemed and the customer purchases merchandise using the shopping card. The Company recognizes revenue from service transactions at the time the service is performed. Generally, revenue from services is classified as a component of net sales in the Company$$s Consolidated Statements of Income.

Source: Walmart

Required:

Does Walmart separately report current assets versus long$-$term assets, and current liabilities versus long$-$term liabilities?

What amounts did Walmart report for the following items for $2020$:

Note: Enter your answers in millions.

Total assets

Current assets

Current liabilities

Total equity

Retained earnings

Inventory

What is Walmart$$s largest current asset? What is its largest current liability?

Compute Walmart$$s current ratio for $2020.$

Note: Round your answer to $2$ decimal places.

Identify the following items from the summary of significant accounting policies:

Does the company have any securities classified as cash equivalents?

What cost method does the company use for its U$.$S$.$ inventory?

When does the company recognize revenue from service transactions?

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