Problem 13-5A

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

Wal-Mart Target Stores, Corporation Inc. Income Statement Data for Year Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income (expense) Income tax expense Net income $65,600 44,000 14,600 690 (90) 1,400 $4,820 $410,000 308,000 75,000 2,100 (420) 7,300 $ 17,180 (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 Current ratio 1.55:1 .86 :1 Accounts receivable turnover 8.01 times 102.5 times Average collection period 43.4 days 3.56 days Balance Sheet Data (End of Year) $17,000 $48,000 26,700 120,000 $43,700 $168,000 $11,000 $56,000 17,000 45,000 15,700 67,000 1 2) 3) (4) 5) 6 Inventory turnover Current assets Noncurrent assets Total assets Current liabilities Long-term debt Total stockholders' equity Total liabilities and stockholders' equity 6.38 times 8.93 times Days in inventory days days $43,700 $168,000 Profit margin o (7) Asset turnover times times Return on assets Total assets Total stockholders' equity Current liabilities Total liabilities Beginning-of-Year Balances $45,000 $165,000 13,600 66,000 10,000 58,000 31,400 99,000 8 (9) Return on common stockholders' equity % (10) Debt to assets ratio % Other Data $7,800 6,900 $4,000 34,500 (11) Times interest earned times times Average net accounts receivable Average inventory Net cash provided by operating activities Capital expenditures Dividends 5,700 26,900 (12) Free cash flow 1,800 450 12,400 3,600 Click if you would like to Show Work for this question: Open Show Work