Answered step by step
Verified Expert Solution
Link Copied!

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 2014

image text in transcribed

  1. 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 2014 financial statements of each company. For each company, compute these values and ratios. (a) Working capital. (b) Current ratio. (c) Debt to assets ratio. (d) Free cash flow. (e) Earnings per share. (f) Compare the liquidity and solvency of the two companies.

Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income Income taxes Net income Target Wal-Mart (1/31/14) (1/31/14) Income Statement Data for Year $64,948 $401,244 44,157 306,158 16,389 76,651 894 2,103 28 4,213 1,322 7,145 $ 2,214 $ 13,400 Target Wal-Mart Balance Sheet Data (End of Year) Current assets $17,488 $ 48,949 Noncurrent assets 26,618 114,480 Total assets $44,106 $163,429 Current liabilities $10,512 $ 55,390 Long-term liabilities 19,882 42,754 Total stockholders' equity 13,712 65,285 Total liabilities and stockholders' equity $44,106 $163,429 Net cash provided by operating activities $4,430 $23,147 Cash paid for capital expenditures $3,547 $11,499 Dividends declared and paid on common stock $465 $3,746 Average shares outstanding (millions) 774 3,951 Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income Income taxes Net income Target Wal-Mart (1/31/14) (1/31/14) Income Statement Data for Year $64,948 $401,244 44,157 306,158 16,389 76,651 894 2,103 28 4,213 1,322 7,145 $ 2,214 $ 13,400 Target Wal-Mart Balance Sheet Data (End of Year) Current assets $17,488 $ 48,949 Noncurrent assets 26,618 114,480 Total assets $44,106 $163,429 Current liabilities $10,512 $ 55,390 Long-term liabilities 19,882 42,754 Total stockholders' equity 13,712 65,285 Total liabilities and stockholders' equity $44,106 $163,429 Net cash provided by operating activities $4,430 $23,147 Cash paid for capital expenditures $3,547 $11,499 Dividends declared and paid on common stock $465 $3,746 Average shares outstanding (millions) 774 3,951

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Surviving In General Management

Authors: Philip Berman, Pauline Fielding

1st Edition

9780333483145

More Books

Students also viewed these Finance questions

Question

What the general requirements are for all motions?

Answered: 1 week ago

Question

3. Are psychopaths anxious?

Answered: 1 week ago

Question

Describe the major barriers to the use of positive reinforcement.

Answered: 1 week ago