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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 of Target and Wal-Mart for 2017 are presented here (in millions).

Target Corporation
Wal-Mart Stores, Inc.
Income Statement Data for Year
Net sales
$65,600
$418,000
Cost of goods sold
45,000
310,000
Selling and administrative expenses
14,300
75,000
Interest expense
720
2,200
Other income (expense)
(90
)
(380
)
Income tax expense
1,400
6,900
Net income
$ 4,090
$ 23,520
Balance Sheet Data (End of Year)
Current assets
$18,000
$47,000
Noncurrent assets
26,100
121,000
Total assets
$44,100
$168,000
Current liabilities
$10,000
$55,000
Long-term debt
18,300
43,000
Total stockholders equity
15,800
70,000
Total liabilities and stockholders equity
$44,100
$168,000
Beginning-of-Year Balances
Total assets
$44,000
$165,000
Total stockholders equity
13,200
66,000
Current liabilities
10,800
54,000
Total liabilities
30,800
99,000
Other Data
Average net accounts receivable
$7,900
$4,100
Average inventory
7,100
34,100
Net cash provided by operating activities
5,700
25,900
Capital expenditures
1,600
11,500
Dividends
520
4,200

(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
image text in transcribed1.80
:1
image text in transcribed0.85
:1
(2) Accounts receivable turnover
image text in transcribed8.30
times
image text in transcribed101.95
times
(3) Average collection period
image text in transcribed43.97
days
image text in transcribed3.58
days
(4) Inventory turnover
image text in transcribed6.33
times
image text in transcribed9.09
times
(5) Days in inventory
image text in transcribed57.66
days
image text in transcribed40.15
days
(6) Profit margin
image text in transcribed
%
image text in transcribed
%
(7) Asset turnover
image text in transcribed
times
image text in transcribed
times
(8) Return on assets
image text in transcribed
%
image text in transcribed
%
(9) Return on common stockholders equity
image text in transcribed
%
image text in transcribed
%
(10) Debt to assets ratio
image text in transcribed
%
image text in transcribed
%
(11) Times interest earned
image text in transcribed
times
image text in transcribed
times
(12) Free cash flow
$
image text in transcribed3580
$
image text in transcribed10200

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