Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 2 of 3 -18 Selected financial data of two competitors, Target and Walmart, are presented here. (All dollars are in millions.) Suppose the data
Question 2 of 3 -18 Selected financial data of two competitors, Target and Walmart, are presented here. (All dollars are in millions.) Suppose the data were taken from the 2022 financial statements of each company. Target (1/31/22) Walmart (1/31/22) Income Statement Data for Year Net sales $64.948 $401,244 Cost of goods sold 44,157 306,158 Selling and administrative expenses 16,389 76,651 Interest expense 894 2,103 Other income 28 4,213 Income taxes 1.322 7,145 Net income $2.214 $13.400 Target Walmart Balance Sheet Data (End of Year) Current assets $17.488 $48.949 Noncurrent assets 26.618 114.480 Total assets $44,106 $163.429 Current liabilities $10.512 $55.390 Long-term liabilities 19.882 42.754 Total stockholders' equity 13.712 65.285 Total liabilities and stockholders' equity $44,106 $163.429 each company, compute these values and ratios. (All dollars are in millions.) (Round Current ratio to 2 decimal places, e.g. 15.25 and to assets ratio to 1 decimal place, e.g. 78.9%. Enter negative amounts using either a negative sign preceding the number eg.-45 or entheses eg. (45).) Target Walmart Working capital $ $ ) Current ratio :1 :1 Debt to assets ratio % % 1) Which company has better liquidity? Which company has better solvency
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started