Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Current Attempt in Progress Selected financial data of two competitors, Target and Wal-Mart, are presented here. (All dollars are in millions.) Suppose the data were

image text in transcribedimage text in transcribedimage text in transcribed

Current Attempt in Progress Selected financial data of two competitors, Target and Wal-Mart, are presented here. (All dollars are in millions.) Suppose the data were taken from the 2022 financial statements of each company. Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income Target Wal-Mart (1/31/22) (1/31/22) Income Statement Data for Year $66,000 $428,000 43,560 321,000 16,500 81,320 1,320 2,140 20 4,000 1,624 9,639 $ 3,016 $ 17,901 Income taxes Net income Current assets Noncurrent assets Target Wal-Mart Balance Sheet Data (End of Year) $19,800 $ 45,580 29,000 112,000 $48,800 $157,580 $11,000 $ 53,000 22,184 33,669 15,616 70,911 $48,800 $157,580 Total assets Current liabilities Long-term liabilities Total stockholders' equity Total liabilities and stockholders' equity Net cash provided by operating activities Cash paid for capital expenditures Dividends declared and paid on common stock Weighted-average common shares outstanding (millions) $4,400 $3,400 $460 $23,100 $12,000 $3,600 2,550 580 For each company, compute these values and ratios. (All dollars are in millions.) (Round Current ratio and Earnings per share to 2 decimal places, e.g. 15.25 and Debt to assets ratio to 1 decimal place, e.g. 78.9%. If answer is negative enter it with a negative sign preceding the number e.g. -15,000 or in parentheses e.g. (15,000).) Target Wal-Mart (a) Working capital (b) Current ratio :1 :1 (c) Debt to assets ratio % % (d) Free cash flow (e) Earnings per share (f) Which company has better liquidity? Which company has better solvency

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting For Business Decisions

Authors: Ray Proctor

2nd Edition

0273681559, 978-0273681557

More Books

Students also viewed these Accounting questions