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Suppose selected financial data of Target and Wal-Mart for 2017 are presented here (in millions) Wal-Mart Target Corporation Stores, Inc. Income Statement Data for Year
Suppose selected financial data of Target and Wal-Mart for 2017 are presented here (in millions) Wal-Mart Target Corporation Stores, Inc. Income Statement Data for Year $410,000 Net sales $66,400 Cost of goods sold 46,000 308,000 Selling and administrative expenses 14,200 78,000 Interest expense 650 2,200 Other income (expense) (390) (70) Income tax expense 1,400 7,100 $4,080 14,310 Net income Balance Sheet Data (End of Year) $48,000 Current assets $19,000 26,900 122,000 Noncurrent assets $170,000 $45,900 Total assets $10,000 $56,000 Current liabilities Long-term debt 16,900 44,000 Total stockholders' equity 19,000 70,000 Total liabilities and stockholders' $45,900 $170,000 equity Beginning-of-Year Balances Total assets $43,000 $162,000 14,300 Total stockholders' equity 65,000 Current liabilities 10,500 55,000 97,000 Total liabilities 28,700 Other Data $7,600 Average net accounts receivable $3,900 Average inventory 6,900 32,900 Net cash provided by operating 5,500 26,600 activities Capital expenditures 1,700 12,400 Dividends 460 3,900 (a) For each company, compute the following ratios. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%.) Target Wal-Mart Ratio (1) Current ratio :1 :1 Accounts receivable turnover (2) times times days (3) Average collection period days times (4) Inventory turnover times days (5) Days in inventory days Profit margin % % (6) (7) Asset turnover times times Return on assets % (8) % % % (9) Return on common stockholders' equity % % (10) Debt to assets ratio (11) Times interest earned times times (12) Free cash flow $ 96
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