(Selecting a benchmark company) Here you will find the income statements and balance sheets for Sears Holding and Target Corp. Assume that you are a financial manager at Sears and want to compare your firm's situation with that of Target.

(Selecting a benchmark company) Here you will find the income statements and balance sheets for Sears Holding and Target Corp. Assume that you are a financial manager at Sears and want to compare your firm's situation with that of Target. Calculate representative ratios for liquidity, asset management efficiency, financial leverage (capital structure), and profitability for both Sears and Target. How would you summarize the financial performance of Sears compared to Target (its benchmark firm)? Sears 's current ratio is______. Round to two decimal places. Target's current ratio is ______. Round to two decimal places. Sear's times interest earned is ____ times. Round to two decimal places. Target's times interest earned is ____ times. Round to two decimal places. Sear's inventory turnover is _____ times. Round to two decimal places. Target's inventory turnover is _____ times. Round to two decimal places. Sear's total asset turnover is ______ Round to two decimal places. Target's total asset turnover is _____ Round to two decimal places. Sears operating profit margin is ___%. (round to one decimal place) Target's operating profit margin is ___%(round to one decimal place) Sear's operating return on assets is ___%(round to one decimal place) Target's operating return on assets is ___%(round to one decimal place) Sear's debt ratio is ____% round to one decimal place) Target's debt ratio is ____% round to one decimal place) Sear's average collection period is _____days. (Round to one decimal place) Target's average collection period is _____days. (Round to one decimal place) Sear's fixed asset turnover is ____. (Round to one decimal place) Target's fixed asset turnover is ____. (Round to one decimal place) Sear's return on equity is ___%. (Round to one decimal place) Target's return on equity is ___%. (Round to one decimal place). How would you summarize the financial performance of Sears compared to Target (its benchmark firm)? Select the best choice. Category of financial ratios 1. Liquidity Ratios Current Ratio Average Collection Period Inventory Turnover (Select the best choices below)) Category of Financial Ratios 2. Capital Structure Ratios Times Interest Earned Category of Financial Ratios 3. Asset Management Efficiency Ratios Total Asset Turnover Sear's Performance vs. Target A. Better B. Similar Worse A. Better B. Similar Worse A. Better B. Similar Worse C. C. C. Sear's Performance vs. Target A. Better B. Similar A. Better B. Similar Sear's Performance vs. Target A. Better B. Similar C. Worse A. Better B. Similar C. Worse (Select the best choices ) Category of Financial Ratios 4.Profitability Ratios Operating Profit Margin Operating Return on Assets A. Better B. Similar C. Worse A. Better B. Similar C. Worse Return on Equity A. Better B. Similar C. Worse Fixed Assets Turnover Sears Holdings (SHLD) Target Corp (TGT) Period Ended 31-Jan-09 31-Jan-09 Total revenue $46,770,000 $64,948,000 Cost of revenue (34,118,000) (44,157,000) Gross profit $12,652,000 $20,791,000 Operating expenses (12,050,000) (16,389,000) Operating income or loss $602,000 $4,402,000 Interest expense (272,000) (894,000) Net income $330,000 $3,508,000 C. Worse C. Worse Period Ending Cash and cash equivalents Accounts receivable Inventories Other current assets Total current assets Long-term investments Property, plant, and equipment Other assets Total assets Liabilities Accounts payable Short-/current long-term debt Other current liabilities total current liabilities Long-term debt Other long-term liabilities Total liabilities Total stockholders' equity Total liabilities and owners' equity Sears Holdings (SHLD) Target Corp (TGT) 31-Jan-09 31-Jan-09 $864,000 $1,297,000 9,446,000 866,000 6,705,000 8,795,000 473,000 458,000 $17,488,000 $11,416,000 163,000 0 25,756,000 8,091,000 699,000 5,835,000 $44,106,000 $25,342,000 $7,366,000 1,262,000 1,884,000 $10,512,000 17,490,000 2,392,000 $19,882,000 13,712,000 $44,106,000 $3,430,000 787,000 4,295,000 $8,512,000 2,132,000 5,318,000 $7,450,000 9,380,000 $25,342,000