why do the assets under capital leases not equal the liabilities under capital lease 642275
SAVING PEOPLE MONEY
WAL MART STORES, INC.* |
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January 31, |
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(Amounts in millions except per share data) |
2009 |
2008 |
Assets |
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Current assets: |
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Cash and cash equivalents |
$7,275 |
$5,492 |
Receivables |
3,905 |
3,642 |
Inventories |
34,511 |
35,159 |
Prepaid expenses and other |
3,063 |
2,760 |
Current assets of discontinued operations |
195 |
967 |
Total current assets |
48,949 |
48,020 |
Property and equipment, at cost: |
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Land |
19,852 |
19,879 |
Buildings and improvements |
73,810 |
72,141 |
Fixtures and equipment |
29,851 |
28,026 |
Transportation equipment |
2,307 |
2,210 |
Property and equipment, at cost |
125,820 |
122,256 |
Less accumulated depreciation |
32,964 |
28,531 |
Property and equipment, net |
92,856 |
93,725 |
Property under capital lease: |
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Property under capital lease |
5,341 |
5,736 |
Less accumulated amortization |
2,544 |
2,594 |
Property under capital lease, net |
2,797 |
3,142 |
Goodwill |
15,260 |
15,879 |
Other assets and deferred charges |
3,567 |
2,748 |
Total assets |
$163,439 |
$163,514 |
Liabilities and Shareholders’ Equity |
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Current liabilities: |
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Commercial paper |
$1,506 |
$5,040 |
Accounts payable |
28,849 |
30,344 |
Accrued liabilities |
18,112 |
15,725 |
Accrued income taxes |
677 |
1,000 |
Long term debt due within one year |
5,848 |
5,913 |
Obligations under capital leases due within one year |
315 |
316 |
Current liabilities of discontinued operations |
83 |
140 |
Total current liabilities |
55,390 |
58,478 |
Long term debt |
31,349 |
29,799 |
Long term obligations under capital leases |
3,200 |
3,603 |
Deferred income taxes and other |
6,014 |
5,087 |
Minority interest |
2,191 |
1,939 |
Commitments and contingencies |
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Shareholders’ equity: |
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Preferred stock ($0.10 par value; 100 shares authorized, none issued) |
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Common stock ($0.10 par value, 11,000 shares authorized, 3,925 and 3,973 issued and outstanding at January 31, 2009 and January 31, 2008, respectively) |
393 |
397 |
Capital in excess of par value |
3,920 |
3,028 |
January 31, |
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(Amounts in millions except per share data) |
2009 |
2008 |
Retained earnings |
63,660 |
57,319 |
Accumulated other comprehensive (loss) income |
2,688 |
3,864 |
Total shareholders’ equity |
65,285 |
64,608 |
Total liabilities and shareholders’ equity |
$163,429 |
$163,514 |
Required
a. Observe that accumulated amortization is deducted from property under capital lease. Why is
this described as amortization instead of depreciation?
b. Why do the assets under capital leases not equal the liabilities under capital leases?