Selected financial data of Target and Wal-Mart for 2009 are presented here

(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) Days in inventory. (12) Current cash debt coverage.
(6) Profit margin. (13) Cash debt coverage.
(7) Asset turnover. (14) Free cash flow.

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

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Target Corporation Wal-Mart Stores, Inc. Income Statement Data for Year Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income (expense) Income tax expense Net income $65,357 45,583 15,101 707 (94) 1,384 $408,214 304,657 79,607 2,065 (411) 7,139 $ 14,335 $ 2,488 Balance Sheet Data (End of Year) Current assets Noncurrent assets Total assets Current liabilities Long-term debt Total stockholders' equity $18,424 $ 48,331 26,109 $44,533 122,375 $170,706 $11,327 $ 55,561 17,859 44,089 15,347 71,056 Total liabilities and stockholders' equity $44,533 $170,706 Beginning-of-Year Balances Total assets Total stockholders' equity Current liabilities Total liabilities $44,106 $163,429 13,712 65,682 10,512 55,390 30,394 97,747 Other Data Average net receivables $7,525 $ 4,025 Average inventory 6,942 33,836 Net cash provided by operating activities 5,881 26,249 Capital expenditures 1,729 12,184 Dividends 496 4,217