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Problem 14-5A a Suppose selected financial data of Target and Wal-Mart for 2020 are presented here (in millions). Target Corporation Wal-Mart Stores, Inc. Income Statement
Problem 14-5A a Suppose selected financial data of Target and Wal-Mart for 2020 are presented here (in millions). 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 $2,488 14,335 Net income Balance Sheet Data (End of Year) Current assets $18,424 $48.331 Noncurrent assets 26,109 122,375 $44,533 $170,706 Total assets Current liabilities $11,327 $55,561 17,859 Long-term debt 44,089 Total stockholders' equity 15,347 71,056 Total liabilities and stockholders' equity $44,533 $170,706 Beginning-of-Year Balances $44.106 Total assets $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 (a) For each company, compute the following ratios. (Enter free cash flow in millions. Round Current ratio to 2 decimal places, e.g. 1.67. Round Debt to assets ratio to 0 decimal places, e.g. 18 or 18%. Round all other answers to decimal place, e.g. 1.6, or 1.6 %. Use 365 dayys for calculation.) Ratio Target Wal-Mart (1) Current ratio 1 :1 (2) Accounts receivable turnover times times Average collection period (3) days days (4) Inventory turnaver times times (5) inventory days days Days (6) Profit margin Asset turnover (7) times times (8) Return on assets (9) Return on common stockholders' equity (10) Debt assets ratio (11) Times interest earned times times (12) Free cash flow million million 5
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