Problem 13-5A

Suppose selected financial data of Target and Wal-Mart for 2017 are presented here (in millions).

		Target Corporation				Wal-Mart Stores, Inc.
		Income Statement Data for Year
Net sales			$65,300			$417,000
Cost of goods sold			45,000			301,000
Selling and administrative expenses			14,000			79,000
Interest expense			660			1,800
Other income (expense)			(85	)		(380	)
Income tax expense			1,500			7,100
Net income			$ 4,055			$ 27,720
		Balance Sheet Data (End of Year)
Current assets			$16,000			$50,000
Noncurrent assets			27,400			121,000
Total assets			$43,400			$171,000
Current liabilities			$11,000			$54,000
Long-term debt			17,800			43,000
Total stockholders equity			14,600			74,000
Total liabilities and stockholders equity			$43,400			$171,000
		Beginning-of-Year Balances
Total assets			$45,000			$162,000
Total stockholders equity			12,800			66,000
Current liabilities			10,800			54,000
Total liabilities			32,200			96,000
		Other Data
Average net accounts receivable			$7,600			$3,800
Average inventory			7,100			33,200
Net cash provided by operating activities			5,600			27,400
Capital expenditures			1,600			12,100
Dividends			470			4,200

(a) For each company, compute the following ratios. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%.) Ratio Target Wal-Mart

(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) Free cash flow