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Please explain answers in detail. Selected financial data of two competitors, Target and Wal-Mart, are presented here. (All dollars are in millions.) Suppose the data
Please explain answers in detail.
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. Target (1/31/22) Wal-Mart (1/31/22) Income Statement Data for Year Net sales $69,000 $425,000 Cost of goods sold 46,230 297,500 Selling and administrative expenses 17,250 72,250 Interest expense 690 4,250 Other income 30 4,100 Income taxes 1,701 19,285 Net income $3,159 $ 35,815 Target Wal-Mart Balance Sheet Data (End of Year) Current assets $18,240 $ 40,700 Noncurrent assets 31,000 117,000 Total assets $49,240 $157,700 Current liabilities $12,000 $ 55,000 Long-term liabilities 22,468 42,774 Totaltoclcboldoret 14 772 50 026 14.772 59,926 Total stockholders' equity Total liabilities and stockholders' equity $49,240 $157,700 Net cash provided by operating activities $4,700 $23,600 Cash paid for capital expenditures $3,500 $12,000 Dividends declared and paid on common stock $550 $3,400 Weighted average common shares outstanding (millions) 780 4,940 For each company, compute these values and ratios. (All dollars are in millions.) (Round Current ratio and Earnings per share to 2 decimal places, eg. 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 eg.-15,000 or in parentheses eg. (15,000).) Target Wal-Mart (a) Working capital 6,240 -14,300 (b) Current ratio 1.52 0.74 (c) Debt to assets ratio (d) Free cash flow $ 650 $ 8,200 (e) Earnings per share $ (f) Which company has better liquidity? Which company has better solvencyStep by Step Solution
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