Solutions in green are correct, the red ones are incorrect.

Target Corporation Wal-Mart Stores, Inc. Income Statement Data for Year $66,400 $407,000 Net sales Cost of goods sold 306,000 46,000 Selling and administrative expenses 15,500 79,000 Interest expense 1,800 670 Other income (expense) (85) (390) Income tax expense 7,500 1,300 $2,845 12,310 Net income Balance Sheet Data (End of Year) $19,000 $47,000 Current assets Noncurrent assets 27,300 123,000 $46,300 $170,000 Total assets Current liabilities $11,000 $56,000 Long-term debt 18,100 45,000 Total stockholders' equity 17,200 69,000 Total liabilities and stockholders' equity $46,300 $170,000 Beginning-of-Year Balances $43,000 $164,000 Total assets Total stockholders' equity 14,300 66,000 Current liabilities 10,800 57,000 Total liabilities 98,000 28,700 Other Data $7,900 $4,100 Average net accounts receivable Average inventory 34,000 6,800 Net cash provided by operating activities 26,300 5,600 Capital expenditures 1,800 11,500 Dividends 520 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 Wal-Mart Target (1) Current ratio :1 :1 1.73 0.84 (2) Accounts receivable turnover times times 8.4 99.3 (3) Average collection period days days 43.5 3.4 (4) times Inventory turnover times 6.8 8.9 (5) days days Days in inventory 55.3 41 Profit margin (6) 4.3 3.0 (7) Asset turnover times times 1.5 2.4 (8) Return on assets 6.4 7.2 (9) Return on common stockholders' equity 14.8 12 (10) Debt to assets ratio 62 58 Times interest earned (11) times times 7.2 12. Free cash flow (12) 2930 9720