Access the EDGAR archives (www.sec.gov/edaux/searches.htm) to locate the latest available 10-K filings for Kmart and Wal-Mart. Scroll down to the Summary of Key Financial Information and calculate the following ratios for the most recent two years. Hint: Some data must be obtained from the consolidated financial statements:

a. Liquidity ratios: current ratio, quick ratio, average sales per day, collection period, number of days’sales in ending inventory, and cost of sales per day.

b. Profitability ratios: gross profit percentage, operating income percentage, net income percentage, return on equity, and return on assets.

c. Capital structure ratios: debt to assets, capital composition analysis, and times interest earned.

d. Earnings-per-share, market-to-book value, and price-to-earnings ratio for the most recent year only: Use http://quotes.galt.com for the latest market price of each stock.

e. In your opinion, which company is doing a better job of managing its business? Which company has better growth prospects?