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Selected financial data of two competitors, Target and Wal-Mart, are presented here. (All dollars are in millions.) Suppose the data were taken from the 2017
Selected financial data of two competitors, Target and Wal-Mart, are presented here. (All dollars are in millions.) Suppose the data were taken from the 2017 financial statements of each company. Target Wal-Mart (1/31/17) (1/31/17) Income Statement Data for Year Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income Income taxes Net income 563,600 41,912 15,709 827 $401,244 298,927 75,033 3,611 4,213 9,698 s 18,188 1,937 s 3,243 Target Wal-Mart Balance Sheet Data (End of Year Current assets Noncurrent assets Total assets Current liabilities Long-term liabilities Total stockholders' equity Total liabilities and stockholders' equity $16,500 27,000 543,500 510,700 20,300 12,500 543,500 $ 48,700 118,100 $166,800 52,300 42,400 72,100 $166,800 Net cash provided by operating activities Cash paid for capital expenditures Dividends declared and paid on common stock Weighted- $24,300 $12,000 $3,800 3,900 $4,400 $3,470 average shares outstanding (millions) 780 For each company, compute these values and ratios. (All Dollars Are in Millions) (Round Current ratio and Earnings per share to 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).) Target Wal-Mart (a) Working capital (b) Current ratio (c) Debt to assets ratio (d) Free cash flov (e) Earnings per share (f) Which company has better liquidity? Which company has better solvency
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