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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 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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