Selected financial data of two competitors,TargetandWal-Mart, are presented here. (All dollars are in millions.) Suppose the data were taken from the 2017 financial statements of each company.

Target

(1/31/17)

Wal-Mart

(1/31/17)

Income Statement Data for Year

Net sales$66,800

$401,244

Cost of goods sold44,956

298,124

Selling and administrative expenses16,166

75,434

Interest expense868

1,605

Other income27

4,213

Income taxes1,809

10,535

Net income$ 3,028

$ 19,759

Target

Wal-Mart

Balance Sheet Data (End of Year)

Current assets$17,900

$ 49,800

Noncurrent assets27,300

120,000

Total assets$45,200

$169,800

Current liabilities$11,300

$ 56,600

Long-term liabilities19,400

44,100

Total stockholders' equity14,500

69,100

Total liabilities and stockholders' equity$45,200

$169,800

Net cash provided by operating activities$4,400$22,200Cash paid for capital expenditures$3,460$11,200Dividends declared and paid on common stock$500$3,900Weighted-average shares outstanding (millions)7903,900

For each company, compute these values and ratios. (All Dollars Are in Millions)(Round Current ratioand Earnings per shareto 2 decimal places, e.g. 15.25 and Debt to assets ratio to 1 decimal place, e.g. 78.9%. If answer is negative enter it with a negative sign preceding the number e.g. -15,000 or in parentheses e.g. (15,000).)

TargetWal-Mart(a)Working capital$

$

(b)Current ratio

:1

:1(c)Debt to assets ratio

%

%(d)Free cash flow$

$

(e)Earnings per share$

$

(f)Which company has better liquidity?

Target

Wal-Mart

Which company has better solvency?

Target

Wal-Mart