Problem 13-05A
Selected hypothetical financial data of Target and Wal-Mart for 2022 are presented here (in millions).
Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income (expense) Income tax expense Net income Target Wal-Mart Corporation Stores, Inc. Income Statement Data for Year $66,700 $409,000 46,000 306,000 14,700 76,000 650 1,800 (95) (420) 1,400 7,200 $ 3,855 $ 17,580 Current assets Noncurrent assets Total assets Current liabilities Long-term debt Total stockholders' equity Total liabilities and stockholders' equity Balance Sheet Data (End of Year) $19,000 $48,000 25,600 120,000 $44,600 $168,000 $10,000 $55,000 18,200 44,000 16,400 69,000 $44,600 $168,000 Total assets Total stockholders' equity Current liabilities Total liabilities Beginning-of-Year Balances $43,000 $162,000 13,500 66,000 10,500 55,000 29,500 96,000 For each company, compute the following ratios. (Round current ratio answers to 2 decimal places, e.g. 15.50, debt to assets ratio and free cash flow answers to 0 decimal places, e.g. 5,275 and all answers to 1 decimal place, e.g. 1.8 or 1.83%.) Ratio Target Wal-Mart (1) Current ratio :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) Free cash flow Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income (expense) Income tax expense Net income Target Wal-Mart Corporation Stores, Inc. Income Statement Data for Year $66,700 $409,000 46,000 306,000 14,700 76,000 650 1,800 (95) (420) 1,400 7,200 $ 3,855 $ 17,580 Current assets Noncurrent assets Total assets Current liabilities Long-term debt Total stockholders' equity Total liabilities and stockholders' equity Balance Sheet Data (End of Year) $19,000 $48,000 25,600 120,000 $44,600 $168,000 $10,000 $55,000 18,200 44,000 16,400 69,000 $44,600 $168,000 Total assets Total stockholders' equity Current liabilities Total liabilities Beginning-of-Year Balances $43,000 $162,000 13,500 66,000 10,500 55,000 29,500 96,000 For each company, compute the following ratios. (Round current ratio answers to 2 decimal places, e.g. 15.50, debt to assets ratio and free cash flow answers to 0 decimal places, e.g. 5,275 and all answers to 1 decimal place, e.g. 1.8 or 1.83%.) Ratio Target Wal-Mart (1) Current ratio :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) Free cash flow
