Question 1176778
Let's break down this problem step-by-step.

**Given Information:**

* **2014:**
    * CPI: 236.7
    * Nominal Revenue: $486 billion
* **2015:**
    * CPI: 245.1
    * Nominal Revenue: $500 billion
* Base Year: 2012

**a. What was Walmart's revenue in 2014 adjusted for inflation?**

To find the real revenue (adjusted for inflation), we use the following formula:

* Real Revenue = (Nominal Revenue / CPI) * 100

* Real Revenue (2014) = ($486 billion / 236.7) * 100
* Real Revenue (2014) ≈ $205.32 billion

**b. What was Walmart's revenue in 2015 adjusted for inflation?**

* Real Revenue (2015) = ($500 billion / 245.1) * 100
* Real Revenue (2015) ≈ $204.00 billion

**c. Did Walmart's nominal revenue increase or decrease from 2014 to 2015?**

* Nominal Revenue (2014): $486 billion
* Nominal Revenue (2015): $500 billion

* The nominal revenue increased from $486 billion to $500 billion.

**d. Did Walmart's real revenue increase or decrease from 2014 to 2015?**

* Real Revenue (2014): $205.32 billion
* Real Revenue (2015): $204.00 billion

* The real revenue decreased from $205.32 billion to $204.00 billion.

**e. If you worked for Walmart, would you rewrite the annual report? why or why not?**

Yes, I would rewrite the annual report to provide a more accurate and nuanced picture of Walmart's performance. Here's why:

* **Misleading Headline:** Simply stating that revenue "grew" is misleading. While nominal revenue increased, real revenue (which reflects actual purchasing power) decreased. This could give investors a false impression of growth.
* **Transparency:** A responsible annual report should present both nominal and real revenue figures. This allows stakeholders to understand the impact of inflation on the company's performance.
* **Context:** Explaining the difference between nominal and real values is crucial. The report should clarify that the nominal increase was partially offset by inflation.
* **Improved Wording:** Instead of just saying "revenue had grown," the report could say something like: "Nominal revenue increased to $500 billion. However, after adjusting for inflation, real revenue was $204.00 billion, slightly lower than the previous year." or "While nominal revenue increased, real revenue decreased slightly."

By providing a more comprehensive and transparent analysis, Walmart can build trust with its stakeholders and provide a more accurate representation of its financial performance.