Here you will find the income statements and balance sheets for Sears Holdings (SHLD) and Target Corp (TGT). Assume that you are a financial manager at Sears and want to compare yourfirm's situation with that of Target. Calculate representative ratios for liquidity, asset management efficiency, financial leverage (capital structure), and profitability for both Sears and Target. How would you summarize the financial performance of Sears compared to Target (its benchmark firm)?

1.Liquidity Ratios

Sears' current ratio is ___ times.(Round to two decimalplaces.)

Target's current ratio is ____ times.(Round to two decimalplaces.)

Sears' acid-test ratio is _____ times.(Round to two decimalplaces.)

Target's acid-test ratio is ____ times.(Round to two decimal places.)

Sears' average collection period is _____ days.(Round to one decimal place.)

Target's average collection period is ____ days.(Round to one decimal place.)

Sears' accounts receivable turnover is ____ times.(Round to one decimal place.)

Target's accounts receivable turnover is _____ times.(Round to one decimal place.)

Sears' inventory turnover is _____ times.(Round to two decimal places.)

Target's inventory turnover is _____ times.(Round to two decimal places.)

2.Capital Structure Ratios

Sears' debt ratio is ____%. (Round to one decimalplace.)

Target's debt ratio is _____%. (Round to one decimalplace.)

Sears' times interest earned is ____ times.(Round to two decimal places.)

Target's times interest earned is ____ times.(Round to two decimal places.)

3.Asset Management Efficiency Ratios

Sears' total asset turnover is ____ times.(Round to two decimal places.)

Target's total asset turnover is ___ times.(Round to two decimal places.)

Sears' fixed asset turnover is ____ times.(Round to two decimal places.)

Target's fixed asset turnover is ____ times.(Round to two decimal places.)

4.Profitability Ratios

Sears' gross profit margin is ____%. (Round to one decimal place.)

Target's gross profit margin is ____%. (Round to one decimal place.)

Sears' operating profit margin is ____%. (Round to one decimal place.)

Target's operating profit margin is ____%. (Round to one decimal place.)

Sears' net profit margin is _____%. (Round to one decimal place.)

Target's net profit margin is ____%. (Round to one decimal place.)

Sears' operating return on assets is ____%. (Round to one decimal place.)

Target's operating return on assets is ____%. (Round to one decimal place.)

Sears' return on equity is ____%. (Round to one decimalplace.)

Target's return on equity is ____%. (Round to one decimal place.)

ick on the icon in order to copy its contents into a spreadsheet.) \begin{tabular}{lrr} \hline Accounts receivable & 9,446,000 & 866,000 \\ Inventories & 6,705,000 & 8,795,000 \\ Other current assets & 473,000 & 458,000 \\ Total current assets & $17,488,000 & $11,416,000 \\ Long-term investments & 163,000 & 0 \\ Property, plant, and equipment & 25,756,000 & 8,091,000 \\ Other assets & 699,000 & 5,835,000 \\ Total assets & $44,106,000 & $25,342,000 \\ Liabilities & & \\ Accounts payable & $7,366,000 & $3,430,000 \\ Short-/current long-term debt & 1,262,000 & 787,000 \\ Other current liabilities & 1,884,000 & 4,295,000 \\ Total current liabilities & $10,512,000 & $8,512,000 \\ Long-term debt & 17,490,000 & 2,132,000 \\ Other long-term liabilities & 2,392,000 & 5,318,000 \\ \hline Total long-term liabilities & $19,882,000 & $7,450,000 \\ Total stockholders' equity & 13,712,000 & 9,380,000 \\ \hline Total liabilities and owners' equity & $44,106,000 & $25,342,000 \\ \hline \end{tabular} (Click on the icon in order to copy its contents into a spreadsheet.) How would you summarize the financial performance of Sears compared to Target (its benchmark firm)? (Select the best choices below.) \begin{tabular}{lll} Category of Financial Ratios & Sears' Performance vs. Target \\ 2. Capital Structure Ratios Debt Ratio & A. Better & B. Similar \\ \hline Times Interest Earned & A. Better & Worse \\ \hline \end{tabular} \begin{tabular}{lll} Category of Financial Ratios 3. Asset Management Efficiency Ratios Total Assets Turnover & Sears' Performance vs. Target & A. Better \\ \hline Fixed Assets Turnover & A. Better & Similar \\ \hline \end{tabular} ick on the icon in order to copy its contents into a spreadsheet.) \begin{tabular}{lrr} \hline Accounts receivable & 9,446,000 & 866,000 \\ Inventories & 6,705,000 & 8,795,000 \\ Other current assets & 473,000 & 458,000 \\ Total current assets & $17,488,000 & $11,416,000 \\ Long-term investments & 163,000 & 0 \\ Property, plant, and equipment & 25,756,000 & 8,091,000 \\ Other assets & 699,000 & 5,835,000 \\ Total assets & $44,106,000 & $25,342,000 \\ Liabilities & & \\ Accounts payable & $7,366,000 & $3,430,000 \\ Short-/current long-term debt & 1,262,000 & 787,000 \\ Other current liabilities & 1,884,000 & 4,295,000 \\ Total current liabilities & $10,512,000 & $8,512,000 \\ Long-term debt & 17,490,000 & 2,132,000 \\ Other long-term liabilities & 2,392,000 & 5,318,000 \\ \hline Total long-term liabilities & $19,882,000 & $7,450,000 \\ Total stockholders' equity & 13,712,000 & 9,380,000 \\ \hline Total liabilities and owners' equity & $44,106,000 & $25,342,000 \\ \hline \end{tabular} (Click on the icon in order to copy its contents into a spreadsheet.) How would you summarize the financial performance of Sears compared to Target (its benchmark firm)? (Select the best choices below.) \begin{tabular}{lll} Category of Financial Ratios & Sears' Performance vs. Target \\ 2. Capital Structure Ratios Debt Ratio & A. Better & B. Similar \\ \hline Times Interest Earned & A. Better & Worse \\ \hline \end{tabular} \begin{tabular}{lll} Category of Financial Ratios 3. Asset Management Efficiency Ratios Total Assets Turnover & Sears' Performance vs. Target & A. Better \\ \hline Fixed Assets Turnover & A. Better & Similar \\ \hline \end{tabular}