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 | $66,900 | $419,000 | |||||
Cost of goods sold | 45,000 | 309,000 | |||||
Selling and administrative expenses | 15,000 | 80,000 | |||||
Interest expense | 700 | 1,900 | |||||
Other income (expense) | (80 | ) | (390 | ) | |||
Income tax expense | 1,500 | 6,700 | |||||
Net income | $ 4,620 | $ 21,010 | |||||
Balance Sheet Data (End of Year) | |||||||
Current assets | $17,000 | $45,000 | |||||
Noncurrent assets | 26,700 | 120,000 | |||||
Total assets | $43,700 | $165,000 | |||||
Current liabilities | $11,000 | $55,000 | |||||
Long-term debt | 18,200 | 45,000 | |||||
Total stockholders equity | 14,500 | 65,000 | |||||
Total liabilities and stockholders equity | $43,700 | $165,000 | |||||
Beginning-of-Year Balances | |||||||
Total assets | $43,000 | $165,000 | |||||
Total stockholders equity | 12,600 | 64,000 | |||||
Current liabilities | 10,000 | 58,000 | |||||
Total liabilities | 30,400 | 101,000 | |||||
Other Data | |||||||
Average net accounts receivable | $7,700 | $4,200 | |||||
Average inventory | 6,800 | 34,500 | |||||
Net cash provided by operating activities | 5,500 | 25,800 | |||||
Capital expenditures | 1,800 | 12,300 | |||||
Dividends | 490 | 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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