Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

kindly, slove all requirement. Requirement: For each company, compute the following ratios: Current ratio. Accounts receivable turnover. (in times and days) 3. Inventory turnover. (in

kindly, slove all requirement.

image text in transcribed

Requirement:

  1. For each company, compute the following ratios:

  1. Current ratio.
  2. Accounts receivable turnover. (in times and days)
  3. 3. Inventory turnover. (in times and days)
    1. Profit margin.
    2. Asset turnover.
    3. Return on assets.
    4. Return on ordinary shareholders' equity.
    5. Debt to assets ratio.
    6. Times interest earned.

  1. Compare the liquidity, profitability, and solvency of the two companies.
Selected financial data of Target (USA) and Wal-Mart Stores, Inc. (USA) for a recent year are presented below (in millions). Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income (expense) Income tax expense Net income Non-current assets Current assets Total assets Total equity Non-current liabilities Current liabilities Total equity and liabilities Target Corporation Wal-Mart Stores, Inc. Income Statement Data for Year $72,596 $476,294 51,160 358,069 16,816 91,353 1,126 2,335 (391) (410) 1.132 8,105 $ 1,971 $ 16,022 Statement of Financial Position Data (End of Year) $32,980 $143,566 11.573 61.185 $44,553 $204,751 $16,231 $81,339 15,545 54,067 12.777 69.345 $44,553 $204,751 Beginning-of-Year Balances $48,163 $203, 105 16,558 81,738 14,031 71,818 31,605 131,287 Total assets Total equity Current liabilities Total liabilities Other Data Average net accounts receivable Average inventory Net cash provided by operating activities $2,921 8,335 6,520 $ 6,723 44,331 23,257

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions