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Suppose selected financial data of Target and Wal-Mart for 2019 are presented here (in millions). Wal-Mart Target Corporation Stores, Inc. Income Statement Data for Year
Suppose selected financial data of Target and Wal-Mart for 2019 are presented here (in millions). Wal-Mart Target Corporation Stores, Inc. Income Statement Data for Year $66,300 $411,000 Net sales Cost of goods sold 305,000 44,000 Selling and administrative expenses 14,300 77,000 Interest expense 660 1,900 Other income (expense) (80) (420) Income tax expense 1,500 7,200 $5,760 $19,480 Net income Balance Sheet Data (End of Year) $17,000 $48,000 Current assets 26,800 122,000 Noncurrent assets $43,800 $170,000 Total assets $11,000 $55,000 Current liabilities Long-term debt 17,700 45,000 Total stockholders' equity 15,100 70,000 $43,800 $170,000 Total liabilities and stockholders' equity Beginning-of-Year Balances Total assets $43,000 $164,000 Total stockholders' equity 66,000 12,700 Current liabilities 10,500 55,000 Total liabilities 30,300 98,000 Other Data Average net accounts receivable $7,400 $3,900 Average inventory 7,000 33,200 Net cash provided by operating activities 5,500 26,200 Capital expenditures 1,800 11,900 Dividends 470 3,900 (a) For each company, compute the following ratios. (Round all answers to 2 decimal places, e.g. 1.85 or 1.85%.) Ratio Wal-Mart Target (1) Current ratio :1 :1 (2) Accounts receivable turnover times times (3) Average collection period days days (4) Inventory turnover times times (5) days Days in inventory days Profit margin (6) % (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 %24
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