Question
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
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 $66,600 $407,000 Cost of goods sold 45,000 305,000 Selling and administrative expenses 14,900 79,000 Interest expense 730 1,800 Other income (expense) (75 ) (390 ) Income tax expense 1,500 7,400 Net income $ 4,395 $ 13,410 Balance Sheet Data (End of Year) Current assets $18,000 $50,000 Noncurrent assets 26,100 121,000 Total assets $44,100 $171,000 Current liabilities $10,000 $55,000 Long-term debt 17,200 45,000 Total stockholders equity 16,900 71,000 Total liabilities and stockholders equity $44,100 $171,000 Beginning-of-Year Balances Total assets $45,000 $163,000 Total stockholders equity 13,900 64,000 Current liabilities 10,900 54,000 Total liabilities 31,100 99,000 Other Data Average net accounts receivable $7,900 $3,800 Average inventory 6,800 34,200 Net cash provided by operating activities 5,600 26,800 Capital expenditures 1,600 11,600 Dividends 520 4,200 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 1.83%.) Ratio Target Wal-Mart (1) Current ratio enter the current ratio :1 enter the current ratio :1 (2) Accounts receivable turnover enter accounts receivable turnover in times times enter accounts receivable turnover in times times (3) Average collection period enter average collection period in days days enter average collection period in days days (4) Inventory turnover enter inventory turnover in times times enter inventory turnover in times times (5) Days in inventory enter days in inventory ratio days enter days in inventory ratio days (6) Profit margin enter percentages % enter percentages % (7) Asset turnover enter asset turnover in times times enter asset turnover in times times (8) Return on assets enter percentages % enter percentages % (9) Return on common stockholders equity enter percentages % enter percentages % (10) Debt to assets ratio enter percentages % enter percentages % (11) Times interest earned enter times interest earned times enter times interest earned times (12) Free cash flow $enter a dollar amount $enter a dollar amount
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