Selected financial data of two intense competitors in a recent year are presentedhere (in millions):

Instructions

(a) For each company, compute the following ratios:(1) Current(8) Return on assets(2) Receivables turnover(9) Return on common stockholders' equity(3) Average collection period(10) Debt to total assets(4) Inventory turnover(11) Times interest earned(5) Average days in inventory(12) Current cash debt coverage(6) Profit margin(13) Cash return on sales(7) Asset turnover(14) Cash debt coverage

(b) Compare the liquidity, solvency, and profitability of the two companies.

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Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income (net) Income tax expense Net income Kmart Corporation Wal-Mart Stores, Inc. Income Statement Data for Year $34,025 $82,494 25,992 65,586 7,701 12,858 494 706 572 918 114 1,581 296 $ 2,681 Current assets Property, plant, and equipment (net) Total assets Current liabilities Long-term debt Total stockholders' equity Total liabilities and stockholders' equity Balance Sheet Data (End of Year) $ 9,187 7,842 $17,029 $ 5,626 5,371 6,032 $17,029 $15,338 17,481 $32,819 $ 9,973 10,120 12,726 $32,819