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Selected hypothetical financial data of Target and Wal-Mart for 2022 are presented here (in millions). Target Corporation Wal-Mart Stores, Inc. Income Statement Data for
Selected hypothetical financial data of Target and Wal-Mart for 2022 are presented here (in millions). Target Corporation Wal-Mart Stores, Inc. Income Statement Data for Year Net sales $65,500 $406,000 Cost of goods sold 46,000 305,000 Selling and administrative expenses 15,100 77,000 Interest expense 720 2,000 Other income (expense) (70) (410) Income tax expense 1,500 7,500 Net income $2,110 $ 14,090 Balance Sheet Data (End of Year) Current assets $16,000 $46,000 Noncurrent assets 26,400 121,000 Total assets $42,400 $167,000 Current liabilities $12,000 $54,000 Long-term debt 18,400 45,000 Total stockholders' equity 12,000 68,000 Total liabilities and stockholders' equity $42,400 $167,000 Beginning-of-Year Balances Total assets $43,000 $163,000 Total stockholders' equity 14,100 66,000 Current liabilities 10,800 57,000 Total liabilities 28,900 97,000 Other Data Average net accounts receivable $7,600 $4,100 Average inventory 6,800 34,000 Net cash provided by operating activities 5,900 26,300 Capital expenditures 1,700 11,500 Dividends 520 3,700 For each company, compute the following ratios. (Round current ratio answers to 2 decimal places, e.g. 15.50, debt to assets ratio and free cash flow answers to 0 decimal places, e.g. 5,275 and all answers to 1 decimal place, e.g. 1.8 or 1.8%.) Ratio Target Wal-Mart (1) Current ratio :1 :1 Accounts (2) receivable times times turnover Average (3) days days collection period Inventory (4) times times turnover Days in (5) inventory (6) Profit margin % days days % (7) Asset turnover times times (8) Return on assets % % Return on common (9) stockholders' % % equity Debt to assets (10) % % ratio Times interest (11) times times earned (12) Free cash flow $ $
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