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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

$64,900

$405,000

Cost of goods sold

44,000

300,000

Selling and administrative expenses

14,000

75,000

Interest expense

650

1,800

Other income (expense)

(70

)

(380

)

Income tax expense

1,300

6,500

Net income

$ 4,880

$ 21,320

Balance Sheet Data (End of Year)

Current assets

$16,000

$45,000

Noncurrent assets

25,000

120,000

Total assets

$41,000

$165,000

Current liabilities

$10,000

$54,000

Long-term debt

16,800

43,000

Total stockholders equity

14,200

68,000

Total liabilities and stockholders equity

$41,000

$165,000

Beginning-of-Year Balances

Total assets

$43,000

$162,000

Total stockholders equity

12,500

64,000

Current liabilities

10,000

54,000

Total liabilities

30,500

98,000

Other Data

Average net accounts receivable

$7,400

$3,800

Average inventory

6,800

32,800

Net cash provided by operating activities

5,500

25,500

Capital expenditures

1,600

11,500

Dividends

450

3,500

(a) For each company, compute the following ratios. (Round current ratio to 2 decimal places, e.g 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 2.5%. Use 365 days in calculation.)

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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