Calculate 11 commonly reported finanical ratios for the year ending Jan 2021 for Target and Walmart

Student's Full Name: ACG2071 Principle of Managerial Accounting Ratios for year-end 2021 data: Ratio Categories Profitability Net income in each sales dollar Profitability Gross Margin in each sales dollar Profitability Overall profitability of assets Profitability Profitability of owner investment Profitability Net income per common share Analyzing Stock Market Prospects Market value relative to earnings Liquidity Ability to pay current liabilities Solvency Debt versus equity financing Turnover efficiency Efficiency of inventory management Turnover efficiency Efficiency of AR collections Prof Margin Gross Margin Ratio Retum on Total Assets Return on Equity Basic Eamings Per Share of Common Stock (EPS) PE ratio (Price-Earnings) Current Ratio Debt-to-Equity Ratio Inventory Tumover AR Tumover (Accounts Receivable) Total Asset Turnover In this column, write the components that are measured in the ratio. I have completed three as examples: Net Income Net Sales Net Income-Prefermed Dividends Weighted Average Common Shares Outstanding Turnover efficiency Efficiency of assets in producing sales 1. Write the ratio components in column D. For Example, Profit Margin is "Net Income / Net Revenue" Net Sales is another term for Total Revenue or Net Revenue Cost of Sales Average Inventory 2. Calculate the Financial Ratios for Target and Walmart for Fiscal Year ending January 2021. Write numerators and denominators in columns F & I. and answers in columns G & J. SHOW ALL WORK! Round your answers to two decimal places. Follow the answer format in the chapter. For example: $, % or decimal 3. On the worksheet columns G & J, highlight which ratio is the best when comparing the two corporations. For most financial ratios, the higher result is better except when debt is in the numerator. Use the following data in addition to the financial statements: Target market price of $181.17 and Walmart market price of $140.49 Target weighted-average number of outstanding common shares is 500.6 in millions Walmart weighted-average number of outstanding common shares is 2831 in millions All fina numbers millic Use the s umbers provided. DO NOT add zeros. 4. Which stock would you purchase? Why? Write three complete paragraphs, addressing the strengths and weaknesses of each company and your reasoning for purchasing Target or Walmart stock. Please read instruction page for additional information. Calculate ratios then highlight with color which ratio is best. Which company has the best Profit Margin, etc? Show the numerator and denominator in columns F & Walmart Target Consolidated Statements of Financial Position (millions, except footnotes) Assets Cash and cash equivalents Inventory Other current assets Total current assets Property and equipment Land Buildings and improvements Fixtures and equipment Computer hardware and software Construction-in-progress Accumulated depreciation Property and equipment, net Operating lease assets Other noncurrent assets Total assets FINANCIAL STATEMENTS Liabilities and shareholders' investment Accounts payable Accrued and other current liabilities Current portion of long-term debt and other borrowings Total current liabilities Long-term debt and other borrowings Noncurrent operating lease liabilities Deferred income taxes Other noncurrent liabilities Total noncurrent liabilities January 30, February 1, 2021 2020 $ TARGET CORPORATION 2020 Form 10-K $ $ 8,511 $ 10,653 1,592 20,756 6,141 31,557 5,914 2,765 780 (20,278) 26,879 2,227 1,386 51,248 $ 12,859 $ 6,122 1,144 20,125 11,536 2,218 990 1,939 16,683 42 6,329 8,825 2,577 8,992 1,333 12,902 (756) Shareholders' investment Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Total shareholders' investment 14,440 Total liabilities and shareholders' investment $ 51,248 $ 42.779 Common Stock Authorized 6,000,000,000 shares. $0.0833 par value; 500,877.129 shares issued and outstanding as of January 30, 2021; 504,198,962 shares issued and outstanding as of February 1, 2020. 6,036 30,603 6,083 2,692 533 (19,664) 26,283 2,236 1,358 42,779 9,920 4,406 161 14,487 11,338 2,275 1,122 1,724 16,459 42 6,226 6,433 (868) 11,833 Preferred Stock Authorized 5,000,000 shares, $0.01 par value; no shares were issued or outstanding during any period presented. See accompanying Notes to Consolidated Financial Statements. FINANCIAL STATEMENTS Consolidated Statements of Operations (millions, except per share data) Sales Other revenue Total revenue Cost of sales Selling, general and administrative expenses Depreciation and amortization (exclusive of depreciation included in cost of sales) Operating income Net interest expense Net other (income)/expense Earnings from continuing operations before income taxes Provision for income taxes Net earnings from continuing operations Discontinued operations, net of tax Not earnings Basic earnings per share Continuing operations Discontinued operations Net earnings per share Diluted earnings per share Continuing operations Discontinued operations Net earnings per share Weighted average common shares outstanding Basic Diluted Antidilutive shares Note: Per share amounts may not foot due to rounding. See accompanying Notes to Consolidated Financial Statements. TARGET CORPORATION 2020 Form 10-K $ $ $ $ $ $ 2020 92,400 S 1,161 93,561 66,177 18.615 2,230 6,539 977 16 5,546 1,178 4,368 4,368 S 8.72 S 8.72 S 8.64 $ 8.64 $ 500.6 505.4 2019 77,130 $ 982 78,112 54,864 16,233 2,357 4,658 477 (9) 4,190 921 3.269 12 3,281 S 6.39 $ 0.02 6.42 $ 6.34 $ 0.02 6.36 $ 510.9 515.6 2018 74,433 923 75,356 53,299 15,723 2,224 4,110 461 (27) 3,676 746 2,930 7 2,937 5.54 0.01 5.55 5.50 0.01 5.51 528.6 533.2 (Amin milli ASSETS Current assets Cash and cash equivalents Receivables, net Inventories Prepaid expenses and other Total current s Property and equipment, not Operating lease right-of-use assets Finance lease right-of-use assets, net Other long-term Total t LIABILITIES AND EQUITY Current liabilities: Short-term borowings Accounts payable Accred liabilities Accred income taxes Long-tem debe due within one your Operating lease obligations due within one year Finance lease obligations dor within one year Total current liabilities Long-term de Long-term operating lease obligations Long-term finance lease obligations Deferred income taxes and other Commitments and contingencies Equity Common stock Capital in excess of our value Retained camnings Accumulated other comprehensive lo Total Walmart shareholdeed quity Walmart Inc. Consolidated Balance Sheets Total equity Total liabilities and equity S 5 As of January 31, 2021 17,741 S 44,589 200861 90,067 92.201 13,642 23,598 252,496 S 49.141 37,966 242 3,115 1.466 491 92,645 41,194 3,847 14,370 3646 88,763 (1136) 80,925 6,606 37.531 212.496 2020 9,465 6.284 44,435 1622 61,306 105,200 17,424 4417 31,073 16.567 236,495 575 46973 280 5.362 1.793 311 77,790 43,714 16.171 4307 12961 284 3.247 13,943 (12.8051 74,69 6383 $1.352 236.495 As in millions, pt per share data) Revenner: Net sales Membership and other income Total revenues Costs and expeastst// Cost of sales Operating, selling, general and administrative expenses Operating income Interest: Walmart Inc. Consolidated Statements of Income Debt Finance, capital lease and financing obligations Interest income Interest, net Other (gains) and losses Income before income taxes Provision for income taxes Consolidated net income Consolidated net income attributable to noncontrolling interest Consolidated net income attributable to Walmart Net incoase per common share: Basic net income per common share attributable to Walt Dilated net income per common share attributable to Walmart Weighted average common shares outstanding: Basic Dilated Dividends declared per common share S $ Fiscal Years Ended January 31, 2920 2021 555.233 S 1,918 559,151 420,315 116.288 22,548 1,976 339 (121) 2,194 (210) 20,564 6,858 13,706 (196) 13.510 4.77 $ 4.75 2,831 2,847 216 S 519.926 3 4,038 523,964 394,605 106,791 20,568 2.262 337 (189) 2,410 (1958) 20,116 4.915 15,201 (320) 14,881 S 5.22 S 1.19 2.850 2,868 2.12 S 2019 510329 4,076 514,405 385.301 107.147 21.957 1.975 371 (217) 2.129 8.368 11,460 4281 7.179 (509) 6.670 2.28 2.26 2929 2945 2.08 Student's Full Name: ACG2071 Principle of Managerial Accounting Ratios for year-end 2021 data: Ratio Categories Profitability Net income in each sales dollar Profitability Gross Margin in each sales dollar Profitability Overall profitability of assets Profitability Profitability of owner investment Profitability Net income per common share Analyzing Stock Market Prospects Market value relative to earnings Liquidity Ability to pay current liabilities Solvency Debt versus equity financing Turnover efficiency Efficiency of inventory management Turnover efficiency Efficiency of AR collections Prof Margin Gross Margin Ratio Retum on Total Assets Return on Equity Basic Eamings Per Share of Common Stock (EPS) PE ratio (Price-Earnings) Current Ratio Debt-to-Equity Ratio Inventory Tumover AR Tumover (Accounts Receivable) Total Asset Turnover In this column, write the components that are measured in the ratio. I have completed three as examples: Net Income Net Sales Net Income-Prefermed Dividends Weighted Average Common Shares Outstanding Turnover efficiency Efficiency of assets in producing sales 1. Write the ratio components in column D. For Example, Profit Margin is "Net Income / Net Revenue" Net Sales is another term for Total Revenue or Net Revenue Cost of Sales Average Inventory 2. Calculate the Financial Ratios for Target and Walmart for Fiscal Year ending January 2021. Write numerators and denominators in columns F & I. and answers in columns G & J. SHOW ALL WORK! Round your answers to two decimal places. Follow the answer format in the chapter. For example: $, % or decimal 3. On the worksheet columns G & J, highlight which ratio is the best when comparing the two corporations. For most financial ratios, the higher result is better except when debt is in the numerator. Use the following data in addition to the financial statements: Target market price of $181.17 and Walmart market price of $140.49 Target weighted-average number of outstanding common shares is 500.6 in millions Walmart weighted-average number of outstanding common shares is 2831 in millions All fina numbers millic Use the s umbers provided. DO NOT add zeros. 4. Which stock would you purchase? Why? Write three complete paragraphs, addressing the strengths and weaknesses of each company and your reasoning for purchasing Target or Walmart stock. Please read instruction page for additional information. Calculate ratios then highlight with color which ratio is best. Which company has the best Profit Margin, etc? Show the numerator and denominator in columns F & Walmart Target Consolidated Statements of Financial Position (millions, except footnotes) Assets Cash and cash equivalents Inventory Other current assets Total current assets Property and equipment Land Buildings and improvements Fixtures and equipment Computer hardware and software Construction-in-progress Accumulated depreciation Property and equipment, net Operating lease assets Other noncurrent assets Total assets FINANCIAL STATEMENTS Liabilities and shareholders' investment Accounts payable Accrued and other current liabilities Current portion of long-term debt and other borrowings Total current liabilities Long-term debt and other borrowings Noncurrent operating lease liabilities Deferred income taxes Other noncurrent liabilities Total noncurrent liabilities January 30, February 1, 2021 2020 $ TARGET CORPORATION 2020 Form 10-K $ $ 8,511 $ 10,653 1,592 20,756 6,141 31,557 5,914 2,765 780 (20,278) 26,879 2,227 1,386 51,248 $ 12,859 $ 6,122 1,144 20,125 11,536 2,218 990 1,939 16,683 42 6,329 8,825 2,577 8,992 1,333 12,902 (756) Shareholders' investment Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Total shareholders' investment 14,440 Total liabilities and shareholders' investment $ 51,248 $ 42.779 Common Stock Authorized 6,000,000,000 shares. $0.0833 par value; 500,877.129 shares issued and outstanding as of January 30, 2021; 504,198,962 shares issued and outstanding as of February 1, 2020. 6,036 30,603 6,083 2,692 533 (19,664) 26,283 2,236 1,358 42,779 9,920 4,406 161 14,487 11,338 2,275 1,122 1,724 16,459 42 6,226 6,433 (868) 11,833 Preferred Stock Authorized 5,000,000 shares, $0.01 par value; no shares were issued or outstanding during any period presented. See accompanying Notes to Consolidated Financial Statements. FINANCIAL STATEMENTS Consolidated Statements of Operations (millions, except per share data) Sales Other revenue Total revenue Cost of sales Selling, general and administrative expenses Depreciation and amortization (exclusive of depreciation included in cost of sales) Operating income Net interest expense Net other (income)/expense Earnings from continuing operations before income taxes Provision for income taxes Net earnings from continuing operations Discontinued operations, net of tax Not earnings Basic earnings per share Continuing operations Discontinued operations Net earnings per share Diluted earnings per share Continuing operations Discontinued operations Net earnings per share Weighted average common shares outstanding Basic Diluted Antidilutive shares Note: Per share amounts may not foot due to rounding. See accompanying Notes to Consolidated Financial Statements. TARGET CORPORATION 2020 Form 10-K $ $ $ $ $ $ 2020 92,400 S 1,161 93,561 66,177 18.615 2,230 6,539 977 16 5,546 1,178 4,368 4,368 S 8.72 S 8.72 S 8.64 $ 8.64 $ 500.6 505.4 2019 77,130 $ 982 78,112 54,864 16,233 2,357 4,658 477 (9) 4,190 921 3.269 12 3,281 S 6.39 $ 0.02 6.42 $ 6.34 $ 0.02 6.36 $ 510.9 515.6 2018 74,433 923 75,356 53,299 15,723 2,224 4,110 461 (27) 3,676 746 2,930 7 2,937 5.54 0.01 5.55 5.50 0.01 5.51 528.6 533.2 (Amin milli ASSETS Current assets Cash and cash equivalents Receivables, net Inventories Prepaid expenses and other Total current s Property and equipment, not Operating lease right-of-use assets Finance lease right-of-use assets, net Other long-term Total t LIABILITIES AND EQUITY Current liabilities: Short-term borowings Accounts payable Accred liabilities Accred income taxes Long-tem debe due within one your Operating lease obligations due within one year Finance lease obligations dor within one year Total current liabilities Long-term de Long-term operating lease obligations Long-term finance lease obligations Deferred income taxes and other Commitments and contingencies Equity Common stock Capital in excess of our value Retained camnings Accumulated other comprehensive lo Total Walmart shareholdeed quity Walmart Inc. Consolidated Balance Sheets Total equity Total liabilities and equity S 5 As of January 31, 2021 17,741 S 44,589 200861 90,067 92.201 13,642 23,598 252,496 S 49.141 37,966 242 3,115 1.466 491 92,645 41,194 3,847 14,370 3646 88,763 (1136) 80,925 6,606 37.531 212.496 2020 9,465 6.284 44,435 1622 61,306 105,200 17,424 4417 31,073 16.567 236,495 575 46973 280 5.362 1.793 311 77,790 43,714 16.171 4307 12961 284 3.247 13,943 (12.8051 74,69 6383 $1.352 236.495 As in millions, pt per share data) Revenner: Net sales Membership and other income Total revenues Costs and expeastst// Cost of sales Operating, selling, general and administrative expenses Operating income Interest: Walmart Inc. Consolidated Statements of Income Debt Finance, capital lease and financing obligations Interest income Interest, net Other (gains) and losses Income before income taxes Provision for income taxes Consolidated net income Consolidated net income attributable to noncontrolling interest Consolidated net income attributable to Walmart Net incoase per common share: Basic net income per common share attributable to Walt Dilated net income per common share attributable to Walmart Weighted average common shares outstanding: Basic Dilated Dividends declared per common share S $ Fiscal Years Ended January 31, 2920 2021 555.233 S 1,918 559,151 420,315 116.288 22,548 1,976 339 (121) 2,194 (210) 20,564 6,858 13,706 (196) 13.510 4.77 $ 4.75 2,831 2,847 216 S 519.926 3 4,038 523,964 394,605 106,791 20,568 2.262 337 (189) 2,410 (1958) 20,116 4.915 15,201 (320) 14,881 S 5.22 S 1.19 2.850 2,868 2.12 S 2019 510329 4,076 514,405 385.301 107.147 21.957 1.975 371 (217) 2.129 8.368 11,460 4281 7.179 (509) 6.670 2.28 2.26 2929 2945 2.08