Question
Selected hypothetical financial data of Target and Walmart for 2022 are presented here (in millions). Target Corporation Walmart Inc. Income Statement Data for Year Net
Selected hypothetical financial data of Target and Walmart for 2022 are presented here (in millions).
Target Corporation | Walmart Inc. | ||||||
---|---|---|---|---|---|---|---|
Income Statement Data for Year | |||||||
Net sales | $67,340 | $410,020 | |||||
Cost of goods sold | 44,160 | 303,600 | |||||
Selling and administrative expenses | 14,300 | 81,000 | |||||
Interest expense | 700 | 2,000 | |||||
Other income (expense) | (85 | ) | (390 | ) | |||
Income tax expense | 1,400 | 7,000 | |||||
Net income | $ 6,695 | $ 16,030 | |||||
Balance Sheet Data (End of Year) | |||||||
Current assets | $17,000 | $48,950 | |||||
Noncurrent assets | 27,500 | 122,000 | |||||
Total assets | $44,500 | $170,950 | |||||
Current liabilities | $10,000 | $55,000 | |||||
Long-term debt | 18,200 | 44,000 | |||||
Total stockholders equity | 16,300 | 71,950 | |||||
Total liabilities and stockholders equity | $44,500 | $170,950 | |||||
Beginning-of-Year Balances | |||||||
Total assets | $43,000 | $164,000 | |||||
Total stockholders equity | 13,200 | 64,000 | |||||
Current liabilities | 10,300 | 56,000 | |||||
Total liabilities | 29,800 | 100,000 | |||||
Other Data | |||||||
Average net accounts receivable | $7,400 | $3,800 | |||||
Average inventory | 6,900 | 33,000 | |||||
Net cash provided by operating activities | 6,000 | 27,300 | |||||
Capital expenditures | 1,800 | 11,700 | |||||
Dividends | 520 | 3,900 |
(a) For each company, compute the following ratios. (Round current ratio to 2 decimal places, e.g 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 2.5%. Use 365 days in calculation.)
Ratio | Target | Walmart | ||||||
---|---|---|---|---|---|---|---|---|
(1) | Current ratio | enter Current ratio rounded to 2 decimal places | :1 | enter Current ratio rounded to 2 decimal places | :1 | |||
(2) | Accounts receivable turnover | enter a number of Accounts receivable turnover in times rounded to 1 decimal place | times | enter a number of Accounts receivable turnover in times rounded to 1 decimal place | times | |||
(3) | Average collection period | enter a number of Average collection period in days rounded to 1 decimal place | days | enter a number of Average collection period in days rounded to 1 decimal place | days | |||
(4) | Inventory turnover | enter a number of Inventory turnover in times rounded to 1 decimal place | times | enter a number of Inventory turnover in times rounded to 1 decimal place | times | |||
(5) | Days in inventory | enter a number of days in inventory rounded to 1 decimal place | days | enter a number of days in inventory rounded to 1 decimal place | days | |||
(6) | Profit margin | enter Profit margin in percentages rounded to 1 decimal place | % | enter Profit margin in percentages rounded to 1 decimal place | % | |||
(7) | Asset turnover | enter a number of Asset turnover in times rounded to 1 decimal place | times | enter a number of Asset turnover in times rounded to 1 decimal place | times | |||
(8) | Return on assets | enter Return on assets in percentages rounded to 1 decimal place | % | enter Return on assets in percentages rounded to 1 decimal place | % | |||
(9) | Return on common stockholders equity | enter Return on common stockholders equity in percentages rounded to 1 decimal place | % | enter Return on common stockholders equity in percentages rounded to 1 decimal place | % | |||
(10) | Debt to assets ratio | enter Debt to assets ratio in percentages rounded to 1 decimal place | % | enter Debt to assets ratio in percentages rounded to 1 decimal place | % | |||
(11) | Times interest earned | enter a number of times interest earned rounded to 1 decimal place | times | enter a number of times interest earned rounded to 1 decimal place | times | |||
(12) | Free cash flow | $enter Free cash flow in dollars | $enter Free cash flow in dollars |
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