Selected hypothetical financial data of Target and Walmart for 2025 are presented here (in millions). Instructions a.
Question:
Selected hypothetical financial data of Target and Walmart for 2025 are presented here (in millions).
Instructions
a. For each company, compute the following ratios. Assume all sales were on credit.
1. Current ratio.
4. Inventory turnover.
2. Accounts receivable turnover.
5. Days in inventory.
3. Average collection period.
6. Profit margin.
7. Asset turnover.
8. Return on assets.
9. Return on common stockholders' equity.
10. Debt to assets ratio.
11. Times interest earned.
12. Free cash flow.
b. Compare the liquidity, solvency, and profitability of the two companies.
Transcribed Image Text:
Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income (expense) Income tax expense Net income Current assets Noncurrent assets Total assets Current liabilities Long-term debt Total stockholders' equity Total liabilities and stockholders' equity Total assets Total stockholders' equity Current liabilities Total liabilities Average net accounts receivable Average inventory Net cash provided by operating activities Capital expenditures Cash dividends paid Target Corporation Income Statement Data for Year $408,214 304,657 79,607 $65,357 45,583 15,101 707 (94) 1,384 $ 2,488 $18,424 26,109 $44,533 $11,327 17,859 15,347 $44,533 Walmart Inc. Balance Sheet Data (End of Year) $ 48,331 122,375 $170,706 $ 55,561 44,089 71,056 $170,706 $44,106 13,712 10,512 30,394 Other Data 2,065 $7,525 6,942 5,881 1,729 496 (411) Beginning-of-Year Balances $163,429 65,682 55,390 97,747 7,139 $ 14,335 $ 4,025 33,836 26,249 12,184 4,217
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (2 reviews)
a b Ratio 1 Current ratio 2 Accounts receivable turnover 3 Average collection per...View the full answer
Answered By
Muhammad Salman Alvi
Well, I am a student of Electrical Engineeing from Information Technology University of Punjab. Just getting into my final year. I have always been good at doing Mathematics, Physics, hardware and technical subjects. Teaching profession requires a alot of responsibilities and challenges.
My teaching experience started as an home tutor a year ago. When I started teaching mathematics and physic subjects to an O Level student. He was about 14 years old. His name was Ibrahim and I used to teach him for about 2 hours daily. Teaching him required a lot of patience but I had to be polite with him. I used to give him a 5 min break after 1 hour session. He was quite weak in basic maths and calculation. He used to do quite a lot of mistakes in his homework which I gave him weekly. So I decided to teach him basics from scratch. He used to say that he got the concept even if he didn't. So I had to ask him again and again. I worked on his basics for a month and after that I started taking a weekly test sesions. After few months he started to improve gradually. Now after teaching him for about a year I can proudly say that he has improved alot. The most important thing was he managed to communicate all the difficullties he was facing. He was quite capable and patient. I had a sincere desire to help him reach to its full potential. So I managed to do that. We had a very good honest relationship of a student and a teacher. I loved teaching him as a tutor. Now having an experience of one year teaching I can read students quite well. I look forward to work as an online tutor who could help students in solving their all sort of difficulties, problems and queries.
4.90+
29+ Reviews
43+ Question Solved
Related Book For
Financial Accounting Tools For Business Decision Making
ISBN: 9781119791089
10th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Jill E. Mitchell
Question Posted:
Students also viewed these Business questions
-
Examine and reflect on activities in the profession that lead to life-long learning. Compare and contrast leadership attributes for professional service and scholarship.
-
Part 1 Boland Nominees purchased plant for $50,000 on 1 July 2012 with an effective life of 10 years. It has been depreciated under the diminishing value method. The plant has been used 50% to...
-
Selected hypothetical financial data of Target and Wal-Mart for 2022 are presented here (in millions). Instructions a. For each company, compute the following ratios. 1. Current ratio. 2. Accounts...
-
According to the 1980 revisions to the Copyright Act of 1976,_____. a. the owner of a copyrighted program is allowed to make multiplecopies or adaptations for use on other computers b. copyright...
-
Why is it difficult for labor negotiators to switch from traditional to integrative bargaining? What recommendations would you make for negotiators trying to make this switch? Why is it more...
-
Determine whether the given lines are parallel, perpendicular, or neither. 3.5y = 4.3 1.5x and 3.6x + 8.4y = 1.7
-
Oakbrook Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Snare for the first 2 quarters of 2003. 1. Sales: Quarter 1,...
-
A U.S.-based MNC has a subsidiary in France (local currency, euro, ¬). The balance sheet and income statement of the subsidiary follow. On December 31, 2112, the exchange rate is US$1.20/¬....
-
A ball of radius 13 with a cylindrical hole of radius 4 drilled through its center has volume: volume =
-
Your parents are considering investing in Apple Inc. common stock. They ask you, as an accounting expert, to make an analysis of the company for them. Financial statements of Apple are presented in...
-
The following financial information is for Priscoll Company. Additional information: 1. Inventory at the beginning of 2024 was \(\$ 115,000\). 2. Accounts receivable (net) at the beginning of 2024...
-
For each of the networks in Fig. 15.8 express the output in terms of the Boolean variables x, y or their complements. Then use the expression for the output to simplify the given network. xy
-
What did you think about the two contrasting patterns in this chapter? Do you or someone you know fit one or the other of these patterns? Which pattern do you think is more likely to emphasize...
-
February 28 Purchased 6,000 shares of treasury stock. October 31 Sold the treasury shares purchased on February 28. November 30 Issued 24,000 new shares. December 31 Net income for 2024 is $400,000....
-
The following information is taken from the inventory records of the CNB Company for the month of September: Beginning inventory, 9/1/2024 8,000 units @ $11.00 Purchases: 9/25 Sales: 9/10 9/29 7,000...
-
An idealized column is made up of rigid segments ABC and CD that are joined by an elastic connection at C with rotational stiffness BR 11 kNm/rad. The column has a roller support at B and a sliding...
-
NETWORK DEFENSE AND COUNTERMEASURES (PEARSON IT CYBERSECURITY CURRICULUM (ITCC)) http://download.cnet.com/ZoneAlarm-Free- Firewall/3000-10435_4-10039884.html www.firewallguide.com/freeware.htm...
-
If you borrow $20,000 at the interest rate of 12%, what are the end-of-year payments if the loan is for five years? If the interest rate is 12.5% would the monthly payment be higher/lower?
-
On July 1, 2011, Flashlight Corporation sold equipment it had recently purchased to an unaffiliated company for $480,000. The equipment had a book value on Flashlights books of $390,000 and a...
-
On February 28, 2018, Star Theatre Inc.'s general ledger showed Cash $15,000; Land $85,000; Buildings $77,000; Equipment $20,000; Accounts Payable $12,000; Mortgage Payable $118,000; Common Shares...
-
Pamper Me Salon Inc.'s general ledger at April 30, 2018, showed Cash $5,000; Supplies $500; Equipment $24,000; Accounts Payable $2,100; Bank Loan Payable $10,000; Unearned Revenue (from gift...
-
On May 1, Marty's Repair Shop Ltd. began operations. The following transactions were completed during the month: 1. Issued common shares for $8,000 cash. 2. Paid $1,280 for May office rent. 3....
-
A A- U obe X, x- A Bears Automotive Adjusted Trial Balance December 31, 2020 Account Titles Cash Debit Credit $ 58,000 Accounts receivable 8,000 Supplies Equipment Vehicles Accumulated depreciation...
-
Break Even Sales and Sales Mix for a Service Company Zero Turbulence Airline provides air transportation services between Los Angeles, California, and Kona, Hawal, A single Los Angeles to Kona...
-
Data table Initial investment in 2021 $ Modernize Replace 34,800,000 $ 64,500,000 Terminal disposal value in 2027 Useful life Total annual cash operating cost per prototype chip $ 6,800,000 $...
Study smarter with the SolutionInn App