Question
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 2022
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 2022 financial statements of each company.
Target (1/31/22) Wal-Mart(1/31/22)
Income Statement Data for Year
Net sales $72,000 $415,000
Cost of goods sold 46,800 311,250
Selling and administrative expenses 18,000 53,950
Interest expense 720 3,320
Other income 20 4,400
Income taxes 2,275 17,808
Net income $ 4,225 $33,072
Target Wal-Mart
Balance Sheet Data (End of Year)
Current assets $17,250 $ 47,300
Noncurrent assets 29,000 121,000
Total assets $46,250 $168,300
Current liabilities $11,500 $ 55,000
Long-term liabilities 22,725 45,980
Total stockholders' equity 12,025 67,320
Total liabilities and stockholders' equity $46,250 $168,300
Net cash from operating activities $4,600 $23,300
Cash paid for capital expenditures $3300 $12,200
Dividends declared and paid on common stock $550 $3,400
Average shares outstanding (millions) 650 3,900
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).)
Target Wal-Mart
(a) Working capital $ $
(b) Current ratio :1 :1
(c) Debt to assets ratio % %
(d) Free cash flow $ $
(e) Earnings per share $ $
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