Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

$65,000

$406,000

Cost of goods sold

46,000

306,000

Selling and administrative expenses

14,800

76,000

Interest expense

660

2,200

Other income (expense)

(70

)

(390

)

Income tax expense

1,300

6,500

Net income

$ 2,170

$ 14,910

Balance Sheet Data (End of Year)

Current assets

$19,000

$49,000

Noncurrent assets

26,100

123,000

Total assets

$45,100

$172,000

Current liabilities

$12,000

$55,000

Long-term debt

17,400

43,000

Total stockholders equity

15,700

74,000

Total liabilities and stockholders equity

$45,100

$172,000

Beginning-of-Year Balances

Total assets

$45,000

$162,000

Total stockholders equity

12,900

66,000

Current liabilities

10,300

57,000

Total liabilities

32,100

96,000

Other Data

Average net accounts receivable

$8,000

$3,800

Average inventory

6,800

33,200

Net cash provided by operating activities

5,900

27,400

Capital expenditures

1,700

11,600

Dividends

510

4,200

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Firm Size And Audit Quality In Nigeria An Empirical Review

Authors: LAP Lambert

1st Edition

6139825466, 978-6139825462

More Books

Students also viewed these Accounting questions