Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Selected financial data of Target (USA) and Wal-Mart Stores, Inc. (USA) for a recent year are presented below (in millions). Target Corporation Wal-Mart Stores, Inc.
Selected financial data of Target (USA) and Wal-Mart Stores, Inc. (USA) for a recent year are presented below (in millions). Target Corporation Wal-Mart Stores, Inc. Income Statement Data for Year Net sales $72,596 $476,294 Cost of goods sold 51,160 358,069 Selling and administrative expenses 16,816 91,353 Interest expense 1,126 2,335 Other income (expense) (391) (410) Income tax expense 1,132 8,105 Net income $ 1,971 $ 16,022 Statement of Financial Position Data (End of Year) Non-current assets $32,980 $143,566 Current assets 11,573 61,185 Total assets $44,553 $204,751 Total equity $16,231 $81,339 Non-current liabilities 15,545 54,067 Current liabilities 12,777 69,345 Total equity and liabilities $44,553 $204,751 Beginning-of-Year Balances Total assets $48,163 $203,105 Total equity 16,558 81,738 Current liabilities 14,031 71,818 Total liabilities 31,605 131,287 Other Data Average net accounts receivable $ 2,921 $ 6,723 Average inventory 8,335 44,331 Net cash provided by operating activities 6,520 23,257 (a) For each company, compute the following ratios. (Round all answers to 1 decimal place, e.g. 1.6, or 1.6%.) Ratio Target Wal-Mart (1) Current ratio :1 :1 a (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 ordinary shareholders' equity % % (10) Debt to total assets % % (11) Times interest earned
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