Refer to the financial statements of Target Appendix B and Walmart Appendix C and the Industry Ratio Report Appendix D

Required:

Compute the quality of income ratio for both companies for the most recent reporting year.

Compare the quality of income ratio for both companies to the industry average. Are these companies producing more or less cash from operating activities relative to net income than the average company in the industry?

a Compute the capital acquisitions ratio for both companies for the most recent reporting year.

b Which company has the greater ability to finance purchases of property, plant, and equipment with cash provided by operating activities?

Compare the capital acquisitions ratio for both companies to the industry average. How does each companys ability to finance the purchase of property, plant, and equipment with cash provided by operating activities compare with that of other companies in the industry?