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 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 | $67,000 | $410,000 | |||||
Cost of goods sold | 44,000 | 302,000 | |||||
Selling and administrative expenses | 14,300 | 81,000 | |||||
Interest expense | 700 | 2,000 | |||||
Other income (expense) | (85 | ) | (390 | ) | |||
Income tax expense | 1,400 | 7,000 | |||||
Net income | $ 6,515 | $ 17,610 | |||||
Balance Sheet Data (End of Year) | |||||||
Current assets | $17,000 | $49,000 | |||||
Noncurrent assets | 27,500 | 122,000 | |||||
Total assets | $44,500 | $171,000 | |||||
Current liabilities | $10,000 | $55,000 | |||||
Long-term debt | 18,200 | 44,000 | |||||
Total stockholders equity | 16,300 | 72,000 | |||||
Total liabilities and stockholders equity | $44,500 | $171,000 | |||||
Beginning-of-Year Balances | |||||||
Total assets | $43,000 | $164,000 | |||||
Total stockholders equity | 13,200 | 64,000 | |||||
Current liabilities | 10,300 | 56,000 | |||||
Total liabilities | 29,800 | 100,000 | |||||
Other Data | |||||||
Average net accounts receivable | $7,400 | $3,800 | |||||
Average inventory | 6,900 | 33,000 | |||||
Net cash provided by operating activities | 6,000 | 27,300 | |||||
Capital expenditures | 1,800 | 11,700 | |||||
Dividends | 520 | 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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