Walmart 1999 Annual Report Download - page 38

The Board of Directors and Shareholders,
Wal-Mart Stores, Inc.
We have audited the accompanying consolidated balance sheets of
Wal-Mart Stores, Inc. as of January 31, 1999 and 1998, and the related
consolidated statements of income, shareholders’ equity and cash
flows for each of the three years in the period ended January 31, 1999.
These financial statements are the responsibility of the Company’s
management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted audit-
ing standards. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial state-
ments are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the consolidated financial position of
Wal-Mart Stores, Inc. and Subsidiaries at January 31, 1999 and 1998,
and the consolidated results of their operations and their cash flows
for each of the three years in the period ended January 31, 1999, in
conformity with generally accepted accounting principles.
Tulsa, Oklahoma
March 24, 1999
The financial statements and information of Wal-Mart Stores, Inc.
presented in this Report have been prepared by management which
has responsibility for their integrity and objectivity. These financial
statements have been prepared in conformity with generally accepted
accounting principles, applying certain estimates and judgments
based upon currently available information and management’s view of
current conditions and circumstances.
Management has developed and maintains a system of accounting
and controls, including an extensive internal audit program,
designed to provide reasonable assurance that the Company’s assets
are protected from improper use and that accounting records pro-
vide a reliable basis for the preparation of financial statements. This
system is continually reviewed, improved and modified in response
to changing business conditions and operations, and to recommen-
dations made by the independent auditors and the internal auditors.
Management believes that the accounting and control systems pro-
vide reasonable assurance that assets are safeguarded and financial
information is reliable.
The Company has adopted a Statement of Ethics to guide our man-
agement in the continued observance of high ethical standards of hon-
esty, integrity and fairness in the conduct of the business and in accor-
dance with the law. Compliance with the guidelines and standards is
periodically reviewed and is acknowledged, in writing, by all
management associates.
The Board of Directors, through the activities of its Audit Committee
consisting solely of outside Directors, participates in the process of
reporting financial information. The duties of the Committee include
keeping informed of the financial condition of the Company and
reviewing its financial policies and procedures, its internal accounting
controls and the objectivity of its financial reporting. Both the
Company’s independent auditors and the internal auditors have free
access to the Audit Committee and meet with the Committee periodi-
cally, with and without management present.
John B. Menzer
Executive Vice President and Chief Financial Officer
38
10 Quarterly Financial Data (unaudited)
Quarters ended
Amounts in millions (except per share information) April 30, July 31, October 31, January 31,
1999
Net sales $ 29,819 $ 33,521 $ 33,509 $ 40,785
Cost of sales 23,526 26,422 26,380 32,397
Net income 828 1,034 1,009 1,559
Net income per share, basic and dilutive $.18 $.23 $.23 $.35
1998
Net sales $ 25,409 $ 28,386 $ 28,777 $ 35,386
Cost of sales 20,127 22,478 22,680 28,153
Net income 652 795 792 1,287
Net income per share, basic and dilutive $.14 $.18 $.17 $.29
REPORT OF INDEPENDENT AUDITORS RESPONSIBILITY FOR FINANCIAL
STATEMENTS