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