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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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