Question: Cash Flow s for Walmart Stores (Easy) Walmart has been the most successful retailer in h istory. The panel below reports cash flows and earnings for the firm from 1988 to 1996 (in mill ions of dollars, except per-share numbers):
The cash flows are unlevered cash flows.
a. Why would such a profitable firm have such negative free cash flows?
b. What explains the difference between Walmart cash flows and earnings?
c. Is this a good firm to apply discounted cash flow analysis to?