P2-7A 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 2014 financial statements of each company. compare liquidity and profitability for two compaies LO 2, 4, 5), AP solvency, Target (1/31/14) Wal-Mart (1/31/14) Income Statement Data for Year Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income Income taxes Net income $64,948 44,157 16,389 894 28 1,322 $ 2,214 $401,244 306,158 76,651 2,103 4,213 7145 $ 13,400 Target Wal-Mart Balance Sheet Data (End of Year) Current assets Noncurrent assets Total assets $17,488 26,618 $44,106 $48,949 114,480 $163,429 Current liabilities Long-term liabilities Total stockholders' equity Total liabilities and stockholders' equity $10,512 19,882 13,712 $44,106 55,390 42,754 65,285 $163,429 Net cash provided by operating activities Cash paid for capital expenditures Dividends declared and paid on common stock Average shares outstanding (millions) $4,430 $3,547 $465 774 $23,147 $11,499 $3,746 3,951 Instructions For each company, compute these values and ratios. (a) Working capital (b) Current ratio. (c) Debt to assets ratio. (d) Free cash flow. (e) Earnings per share. Compare the liquidity and solvency of the two companies