Problem 18-05A b (Essay) 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 45,583 15,101 Cost of goods sold Selling and administrative expenses Interest expense Other income (expense) $408,214 304,657 79,607 2,065 (411) 7,139 707 Income tax expense (94) 1,384 $ 2,488 Net income $ 14,335 Balance Sheet Data (End of Year) Current assets Noncurrent assets $48,331 122,375 $170,706 Total assets Current liabilities $18,424 26,109 $44,533 $11,327 17,859 15,347 $44,533 Long-term debt Total stockholders' equity Total liabilities and stockholders' equity $55,561 44,089 71,056 $170,706 Beginning-of-Year Balances Beginning-of-Year Balances Total assets Total stockholders' equity Current liabilities $44,106 13,712 10,512 30,394 $163,429 65,682 55,390 97,747 Total liabilities Other Data Average net accounts receivable Average inventory Net cash provided by operating activities Capital expenditures Dividends $7,525 6,942 5,881 1,729 496 $4,025 33,836 26,249 12,184 4,217 Ratio Wal-Mart Target 1.63 :1 8.6 times 42.0 days 6.6 times 55.3 days 3.8 % 0.87 :1 101.4 times 3.6 days 9.0 times 40.6 days 3.5 % (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 1.5 times 2.4 times 5.6 % 8.6 % 17.1 % 21.0 % 66 % 58 % 6.5 times 11.4 times $3,656 $9,848 (b) Compare the liquidity, solvency, and profitability of the two companies. Click if you would like to Show Work for this question: Open Show Work