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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 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 Cost of goods sold 45,500 319,960 Selling and administrative expenses 16,250 88,410 Interest expense 650 4,210 Other income 20 4,300 Income taxes 917 4,452 Net income $ 1,703 $ 8,268 Target Wal-Mart Balance Sheet Data (End of Year) Current assets $19,680 $ 46,980 Noncurrent assets 33,000 122,000 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 $4,600 $23,000 Cash paid for capital expenditures $3,400 $11,700 Dividends declared and paid on common stock $530 $3,500 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 $ (b) Current ratio (c) Debt to assets ratio (d) Free cash flow A (e) Earnings per share $ (f) Which company has better liquidity? Which company has better solvency
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