Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help and thank you. Suppose selected financial data of Target and Wal-Mart for 2014 are presented here (in millions). (a) For each company, compute

Please help and thank you.

Suppose selected financial data of Target and Wal-Mart for 2014 are presented here (in millions). (a) For each company, compute the following ratios. (Round all answers to 2 decimal places, e.g. 1.83 or 12.61%.) & (b) Compare the liquidty,solvency,&profitability of each company.

(1) Current ratio. :1 :1

(2) Accounts receivable turnover. times times

(3) Average collection period. days days

(4) Inventory turnover. times times

(5) Days in inventory. days days

(6) Profit margin. % %

(7) Asset turnover. times times

(8) Return on assets. % %

(9) Return on common stockholders equity. % %

(10) Debt to assets ratio. % %

(11) Times interest earned. times times

(12) Current cash debt coverage. times times

(13) Cash debt coverage. times times

(14) Free

Target Corporation

Wal-Mart Stores, Inc.

Income Statement Data for Year

Net sales

$65,357

$408,214

Cost of goods sold

45,583

304,657

Selling and administrative expenses

15,101

79,607

Interest expense

707

2,065

Other income (expense)

(94)

(411)

Income tax expense

1,384

7,139

Net income

$ 2,488

$14,335

Balance Sheet Data (End of Year)

Current assets

$18,424

$48,331

Noncurrent assets

26,109

122,375

Total assets

$44,533

$170,706

Current liabilities

$11,327

$55,561

Long-term debt

17,859

44,089

Total stockholders equity

15,347

71,056

Total liabilities and stockholders equity

$44,533

$170,706

Beginning-of-Year Balances

Total assets

$44,106

$163,429

Total stockholders equity

13,712

65,682

Current liabilities

10,512

55,390

Total liabilities

30,394

97,747

Other Data

Average net accounts receivable

$7,525

$4,025

Average inventory

6,942

33,836

Net cash provided by operating activities

5,881

26,249

Capital expenditures

1,729

12,184

Dividends

496

4,217

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

More Books

Students also viewed these Accounting questions