Suppose selected financial data of Target and Wal-Mart for 2020 are presented here (in millions). Instructions a.

Question:

Suppose selected financial data of Target and Wal-Mart for 2020 are presented here (in millions).

image

image

Instructions

a. For each company, compute the following ratios.

1. Current ratio.

2. Accounts receivable turnover.

3. Average collection period.

4. Inventory turnover.

5. Days in inventory.

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.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial and Managerial Accounting

ISBN: 978-1119392132

3rd edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

Question Posted: