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9-12 ? For each company, compute the following ratios. (Round current ratio answers to 2 decimal places, e.g. 15.50, debt to assets ratio and free
9-12 ?
For each company, compute the following ratios. (Round current ratio answers to 2 decimal places, e.g. 15.50, debt to assets ratio and free cash flow answers to 0 decimal places, e.g. 5,275 and all answers to 1 decimal place, e.g. 1.8 or 1.83%.) Ratio Target Wal-Mart (1) Current ratio 1.58 :1 91 :1 ) (2) 8.4 times 100.7 times Accounts receivable turnover Average collection period (3) 43.5 days 3.6 days () (4) 8.8 Inventory turnover 5.6 times times (5) 55.3 41.5 Days in inventory days days (6) 5.9 % 5.3 Profit margin % (7) 1.4 25 Asset turnover times times (8) Return on assets 8.5 % 13.6 9 (9) Return on common stockholders' equity % % (10) Debt to assets ratio % % (11) Times interest earned times times (12) Free cash flow $ $ $ Selected hypothetical financial data of Target and Wal-Mart for 2022 are presented here (in millions) Target Wal-Mart Corporation Stores, Inc. Income Statement Data for Year $65,000 $413,000 45.000 301.000 14,100 80,000 Net sales 710 2,000 Cost of goods sold Selling and administrative expenses interest expense Other income (expense) Income tax expense Net income (85) (410) 1,300 7,500 $ 3,805 $ 22,090 Balance Sheet Data (End of Year) $19.000 $49,000 25,000 123,000 Current assets Noncurrent assets Total assets $44,000 $172,000 $12.000 $54,000 17.400 Current liabilities Long-term debt Total stockholders' equity Total liabilities and stockholders' equity 43,000 75,000 14,600 $44,000 $172,000 Total assets Beginning-of-Year Balances $45,000 $162,000 12,900 66,000 Total stockholders equity Current liabilities 10,300 56,000 Total liabilities 32.100 96,000 Total stockholders' equity 14,600 75.000 Total liabilities and stockholders' equity $44,000 $172.000 Total assets Total stockholders' equity Current liabilities Total liabilities Beginning-of-Year Balances $45,000 $162,000 12.900 66,000 10,300 56,000 32.100 96,000 Other Data $7.700 $4,100 6.800 34.400 Average net accounts receivable Average inventory Net cash provided by operating activities Capital expenditures Dividends 5,600 25,500 1,800 12,300 470 3,600 For each company compute the following ratios. (Round current ratio answers to 2 decimal places, es 15.50, debt to assets ratio and free cash flow answers to O decimal places, e.g. 5.275 and all answers to 1 decimal place, e.g. 1.8 or 1.83%.) Ratio Target Wal-Mart (1) 1.58 91 Current ratio :1 (2) 8.4 times 1007 times Accounts receivable turnover Average collection period 3) 43.5 36 days days (3) (4) Inventory turnover 6.6 times 38 times (5) 55.3 415 Days in inventory days days (6) 5.9 513 Proht margin 9 % (7) 1.4 25 Asset turnover times times Step by Step Solution
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