Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 $65,000 $421.000 319.960 Cost of goods sold 45,500 16,250 Selling and administrative expenses 88.410 Interest expense 650 4.210 Other income 20 4,300 Income taxes 4,452 917 $1,703 Net income $ 8.268 Target Wal-Mart Balance Sheet Data (End of Year) Current assets $ 46,980 $19,680 33,000 Noncurrent assets 122.000 Total assets $52,680 $168.980 Current liabilities $12,000 $ 54,000 Long-term liabilities 24.876 47,388 Total stockholders' equity 15,804 67,592 Total liabilities and stockholders' equity $52.680 $168.980 Net cash provided by operating activities $23.000 Cash paid for capital expenditures $4,600 $3,400 $530 $11.700 $3.500 Dividends declared and paid on common stock Weighted average common shares outstanding (millions) 650 2.650 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 $ (6) Current ratio (c) Debt to assets ratio (d) Free cash flow (e) Earnings per share $ $ (f) Which company has better liquidity? Which company has better solvency
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