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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 $66,900 44,000 14,400 Cost of goods sold Selling and administrative expenses Interest expense Other income (expense) Income tax expense 750 $417,000 308,000 79,000 1,800 (400) 6,600 $ 21,200 (95) 1,500 $ 6,155 Net income Current assets Noncurrent assets Total assets Balance Sheet Data (End of Year) $17,000 $45,000 26,800 120,000 $43,800 $165,000 $10,000 $56,000 17,300 44,000 16,500 65,000 $43,800 $165,000 Current liabilities Long-term debt Total stockholders' equity Total liabilities and stockholders' equity Total assets Total stockholders' equity Beginning-of-Year Balances $43,000 $165,000 13,400 64,000 10,000 56,000 29,600 101,000 Current liabilities Total liabilities Other Data Average net accounts receivable Average inventory Net cash provided by operating activities Capital expenditures Dividends $7,500 7,200 5,500 1,800 450 $3,900 32,800 25,900 12,400 4,400 (a) For each company, compute the following ratios. (Round current ratio to 2 decimal places, 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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