Problem 9-5

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			$66,400			$414,000
Cost of goods sold			45,000			302,000
Selling and administrative expenses			15,500			81,000
Interest expense			650			1,900
Other income (expense)			(80	)		(400	)
Income tax expense			1,400			7,300
Net income			$ 3,770			$ 21,400
		Balance Sheet Data (End of Year)
Current assets			$17,000			$47,000
Noncurrent assets			26,700			120,000
Total assets			$43,700			$167,000
Current liabilities			$11,000			$56,000
Long-term debt			16,800			45,000
Total stockholders equity			15,900			66,000
Total liabilities and stockholders equity			$43,700			$167,000
		Beginning-of-Year Balances
Total assets			$45,000			$164,000
Total stockholders equity			13,300			64,000
Current liabilities			10,500			58,000
Total liabilities			31,700			100,000
		Other Data
Average net accounts receivable			$7,500			$3,900
Average inventory			7,000			33,600
Net cash provided by operating activities			5,500			27,400
Capital expenditures			1,800			11,800
Dividends			500			4,500

(a) For each company, compute the following ratios. (Round current ratio to 2 decimal places, e.g 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 2.5%. Use 365 days in calculation.)

		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		$			$