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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 $66,800 $413,000 Cost of goods sold 46,000 308,000 Selling and administrative expenses 14,400 77,000 Interest expense 680 1,800 Other income (expense) (90) (380) Income tax expense 1,400 6,900 Net income $4,230 $18,920 Balance Sheet Data (End of Year) Current assets $18,000 $47,000 Noncurrent assets 27,500 121,000 Total assets $45,500 $168,000 Current liabilities $11,000 $54,000 Long-term debt 16,800 45,000 Total stockholders' equity 17,700 69,000 Total liabilities and stockholders' equity $45,500 $168,000 Beginning-of-Year Balances Total assets $43,000 $162,000 Total stockholders' equity 13,500 64,000 Current liabilities 10,500 54,000 Total liabilities 29,500 98,000 Other Data Average net accounts receivable $7,700 $3,800 Average inventory 6,800 34,200 Net cash provided by operating activities Capital expenditures 5,600 25,600 1,800 12,100 Dividends 450 4,300 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 O 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 :1 :1 (2) Accounts receivable turnover times times (3) Average collection period days days (4) Inventory turnover times times (5) Days in inventory (6) Profit margin % days days % (7) Asset turnover times times (8) Return on assets % % (9) Return on common stockholders' equity % % (10) Debt to assets ratio % % (11) Times interest earned (12) Free cash flow $ times $ times
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