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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

$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

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:1

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:1
(2) Accounts receivable turnover

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times

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times
(3) Average collection period

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days

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days
(4) Inventory turnover

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times

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times
(5) Days in inventory

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days

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days
(6) Profit margin

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%

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%
(7) Asset turnover

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times

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times
(8) Return on assets

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%

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%
(9) Return on common stockholders equity

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%

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%
(10) Debt to assets ratio

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%

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%
(11) Times interest earned

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times

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times
(12) Free cash flow $

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$

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