Selected hypothetical financial data of Target and Wal-Mart for 2022 are presented here (in millions). Net sales Cost of goods sold Selling and administrative expenses Interest expense Other Income (expense) Income tax expense Net Income Target Wal-Mart Corporation Stores, Inc. Income Statement Data for Year $66,700 $418,000 45,000 309,000 15,200 78,000 740 1,900 (95) (420) 1.400 6,700 $4,265 $21.980 Current assets Noncurrent assets Total assets Current liabilities Long-term debt Total stockholders' equity Total liabilities and stockholders' equity Balance Sheet Data (End of Year) $18,000 $45,000 25,600 120,000 $43,600 $165,000 $11,000 $56,000 17,200 44,000 15,400 65,000 $43,600 $165,000 Total assets Total stockholders' equity Current liabilities Total liabilities Beginning-of-Year Balances $45,000 $163,000 13,400 65,000 10,600 58,000 31,600 98,000 Average net accounts receivable Average inventory Net cash provided by operating activities Capital expenditures Dividends Other Data $7,500 $3,900 7.000 32,800 5,800 26,900 1.700 11,800 450 4,400 For each company, compute the following ratios (Round current ratio answers to 2 decimal places, eg, 15.50, debt to assets ratio and free cash flow answers to decimal places, eg. 5,275 and all answers to 1 decimal place, eg. 18 or 1.83%) Target Wal-Mart Current ratio Ratio (1) :1 :1 (2) times times (3) days days Accounts receivable turnover Average collection period Inventory turnover Days in inventory (4) times times (5) days days (6) Profit margin (7) Asset turnover times times (8) Return on assets 55 19) (10) $ Return on common stockholders equity Debt to assets ratio Times interest earned Free cash flow (11) times times (12) s $ Selected hypothetical financial data of Target and Wal-Mart for 2022 are presented here (in millions). Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income (expense) Income tax expense Net income Target Wal-Mart Corporation Stores, Inc. Income Statement Data for Year $66,700 $418,000 45,000 309,000 15,200 78,000 740 1.900 (95) (420) 1.400 6,700 $ 4,265 $21.980 Current assets Noncurrent assets Total assets Current liabilities Long-term debt Total stockholders' equity Total liabilities and stockholders' equity Balance Sheet Data (End of Year) $18,000 $45.000 25.600 120,000 $43,600 $165.000 $11.000 $56.000 17,200 44,000 15.400 65,000 $43,600 $165.000 Total assets Total stockholders' equity Current liabilities Total liabilities Beginning-of-Year Balances $45.000 $ 163.000 13.400 65.000 10.600 58.000 31.600 98.000 Average net accounts receivable Average inventory Net cash provided by operating activities Capital expenditures Dividends Other Data $7,500 $3.900 7,000 32,800 5,800 26,900 1,700 11,800 450 4.400 For each company, compute the following ratios. (Round current ratio answers to 2 decimal places, eg: 15.50, debt to assets ratio and free cash flow answers to decimal places, eg. 5,275 and all answers to 1 decimal place, eg. 1.8 or 1.83%) Ratio Target Wal-Mart (1) Current ratio 1 11 (2) Accounts receivable turnover times times Average collection period days days Inventory turnover times times (5) Days in Inventory days days (6) Profit margin 96 Asset turnover times times (8) Return on assets 96 19 Return on common stockholders' equity 22 96 (10) Debt to assets ratio 96 (11) Times interest earned times times (12) Free cash flow $ $
