Problem 18-05A b (Essay) Suppose selected financial data of Target and Wal-Mart for 2020 are presented here (in millions). Target Wal-Mart Corporation Stores, 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 $65,357 45,583 15,101 707 (94) 1,384 $ 2,488 $408,214 304,657 79,607 2,065 (411) 7,139 $ 14,335 Current assets Noncurrent assets Total assets Balance Sheet Data (End of Year) $18,424 $48,331 26,109 122,375 $44,533 $170,706 $11,327 $55,561 17,859 44,089 15,347 71,056 $44,533 $170,706 Current liabilities Long-term debt Total stockholders' equity Total liabilities and stockholders' equity Beginning-of-Year Balances Total assets Total stockholders' equity Current liabilities Total liabilities $44,106 13,712 10,512 30,394 $163,429 65,682 55,390 97,747 Average net accounts receivable Average inventory Net cash provided by operating activities Capital expenditures Dividends Other Data $7,525 6,942 5,881 1,729 496 $4,025 33,836 26,249 12,184 4,217 Target 1.63 :1 8.6 times 42.0 days 6.6 times 55.3 days Ratio (1) Current ratio (2) Accounts receivable turnover (3) Average collection period (4) Inventory turnover (5) Days in inventory (6) Profit margin (7) Asset turnover (8) Return on assets (9) Return on common stockholders' equity (10) Debt to assets ratio (11) Times interest earned (12) Free cash flow 3.8 % 1.5 times 5.6 % 17.1 % 66 % 6.5 times $3,656 Wal-Mart 0.87 :1 101.4 times 3.6 days 9.0 times 40.6 days 3.5 % 2.4 times 8.6 % 21.0 % 58 % 11.4 times $9,848 (b) Compare the liquidity, solvency, and profitability of the two companies