Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dollar Tree Inc. in Millions Target Inc. in Millions Total Assets 2021 $20,696.00 Total Assets 2021 $51,248 Please note the ratio computations in the comment

Dollar Tree Inc. in Millions Target Inc. in Millions
Total Assets 2021 $20,696.00 Total Assets 2021 $51,248 Please note the ratio computations in the comment box. This is the same information that was included in the part 2 instructions. Please let me know if you have questions.
Total Stockholders' equity 2021 $7,285.30 Total Stockholder's equity 2021 $14,440 ***You must use cell references from the applicable worksheets to earn credit on your ratio analysis.
Jan. 28, 2023 Jan. 29, 2022 Jan. 28, 2023 Jan. 29, 2022
1. Current ratio 1. Current ratio
2. Liabilities-to-equity 2. Liabilities-to-equity
3. Times interest earned 3. Times interest earned
4. Return on Equity -shown as a percentage 4. Return on Equity -shown as a percentage
5. Profit Margin-Shown as a percentage 5. Profit Margin-Shown as a percentage
6. Asset Turnover 6. Asset Turnover
7. Financial Leverage 7. Financial Leverage
8. Redo your Return on Equity calculation by calculating Profit Margin*Asset Turnover*Financial Leverage. 8. Redo your Return on Equity calculation by calculating Profit Margin*Asset Turnover*Financial Leverage.

Guidance: Guidance for computing ratios in #3 above: 1. Current ratio=Current Assets/Current Liabilities 2. Liabilities-to-equity=Total liabilities/Stockholders Equity 3. Times interest earned=Earnings before Interest Expense and taxes/Interest Expense. ****Use Interest expense if given. If the company does not break out interest expense you will have to use net interest. Also, please note that you should be using operating income if given, since we want net of any other nonoperating income or expenses. 4. Return on Equity=Net(loss) earnings/Average Stockholders Equity. 5. Profit Margin=Net(loss) earnings/Sales 6. Asset Turnover=Sales/Average Total Assets 7. Financial Leverage=Average Total Assets/Average Stockholders Equity 8. Redo your Return on Equity calculation by calculating Profit Margin*Asset Turnover*Financial Leverage. Hint: use your solution for #5, 6, and 7. Your answer should agree with your #4 answer

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

Financial Accounting

Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thomas, W. Morley Lemon, Catherine Seguin, Sandra Robertson Lemon

4th Canadian Edition

0131384333, 9780131384330

More Books

Students also viewed these Accounting questions

Question

What applied experiences do you have? (For Applied Programs Only)

Answered: 1 week ago

Question

5. Explain the supervisors role in safety.

Answered: 1 week ago