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 | $67,000 | $413,000 | |||||
Cost of goods sold | 44,000 | 301,000 | |||||
Selling and administrative expenses | 14,000 | 75,000 | |||||
Interest expense | 660 | 2,200 | |||||
Other income (expense) | (70 | ) | (410 | ) | |||
Income tax expense | 1,400 | 7,000 | |||||
Net income | $ 6,870 | $ 27,390 | |||||
Balance Sheet Data (End of Year) | |||||||
Current assets | $17,000 | $49,000 | |||||
Noncurrent assets | 26,000 | 123,000 | |||||
Total assets | $43,000 | $172,000 | |||||
Current liabilities | $10,000 | $54,000 | |||||
Long-term debt | 17,400 | 43,000 | |||||
Total stockholders equity | 15,600 | 75,000 | |||||
Total liabilities and stockholders equity | $43,000 | $172,000 | |||||
Beginning-of-Year Balances | |||||||
Total assets | $43,000 | $162,000 | |||||
Total stockholders equity | 14,100 | 64,000 | |||||
Current liabilities | 10,800 | 54,000 | |||||
Total liabilities | 28,900 | 98,000 | |||||
Other Data | |||||||
Average net accounts receivable | $7,800 | $3,800 | |||||
Average inventory | 7,100 | 33,400 | |||||
Net cash provided by operating activities | 5,700 | 27,400 | |||||
Capital expenditures | 1,800 | 12,000 | |||||
Dividends | 450 | 4,400 |
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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