Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

serelleu lidl Illal Udd UI LWU LUunipeliLUIS, Idi gel dilu val dll, dle presenteurere. All Ullal s dle IUIIS.) Suppuse lile udld Wereldkeri UIT Lile

image text in transcribedimage text in transcribedimage text in transcribed

serelleu lidl Illal Udd UI LWU LUunipeliLUIS, Idi gel dilu val dll, dle presenteurere. All Ullal s dle IUIIS.) Suppuse lile udld Wereldkeri UIT Lile 2022 financial statements of each company. Target (1/31/22) Wal-Mart (1/31/22) Income Statement Data for Year Net sales $64,000 $405,000 Cost of goods sold 41,600 291,600 Selling and administrative expenses 16,000 72,900 Interest expense 640 4,050 Other income 20 4,150 Income taxes 2,023 14,210 Net income $3,757 $ 26,390 Target Wal-Mart Balance Sheet Data (End of Year) Current assets $22,560 $ 39,900 Noncurrent assets 30,000 116,000 Total assets $52,560 $155,900 Current liabilities $12,000 $ 57,000 Long-term liabilities 22,164 33,422 Year) Current assets $22,560 $ 39,900 Noncurrent assets 30,000 116,000 Total assets $52,560 $155,900 Current liabilities $12,000 $ 57,000 Long-term liabilities 22,164 33,422 Total stockholders' equity 18,396 65,478 Total liabilities and stockholders' equity $52,560 $155,900 Net cash provided by operating activities $5,200 $24,300 Cash paid for capital expenditures $3,200 $11,300 Dividends declared and paid on common stock $460 $3,500 Weighted average common shares outstanding (millions) 850 4,550 For each company, compute these values and ratios. (All dollars are in millions.) (Round Current ratio and Earnings per share to 2 decimal places, e.g. 15.25 and Debt to assets ratio to 1 decimal place, e.g. 78.9%. If answer is negative enter it with a negative sign preceding the number e.g. - 15,000 or in parentheses e.g. (15,000).) Target Wal-Mart (a) Working capital $ (b) Current ratio (c) Debt to assets ratio For each company, compute these values and ratios. (All dollars are in millions.) (Round Current ratio and Earnings per share to 2 decimal places, e.g. 15.25 and Debt to assets ratio to 1 decimal place, e.g. 78.9%. If answer is negative enter it with a negative sign preceding the number e.g. - 15,000 or in parentheses e.g. (15,000).) Target Wal-Mart (a) Working capital $ (b) Current ratio (c) Debt to assets ratio (d) Free cash flow (e) Earnings per share $ (f) Which company has better liquidity? Which company has better solvency

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Fundamental accounting principle

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

21st edition

1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587

Students also viewed these Accounting questions