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 | $66,800 | $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
5,600
25,600
Capital expenditures
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 0 decimal places, e.g. 5,275 and all answers to 1 decimal place, e.g. 1.8 or 1.83%.)
(7) | Asset turnover | |||||||
---|---|---|---|---|---|---|---|---|
(8) | Return on assets |
| % | |||||
(9) | Return on common stockholders equity |
| % | |||||
(10) | Debt to assets ratio |
| % | |||||
(11) | Times interest earned | times | ||||||
(12) | Free cash flow |
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