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Suppose selected financial data of Target and Wal-Mart for 2020 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 2020 are presented here (in millions). Target Corporation Wal-Mart Stores, Inc. Income Statement Data for Year Net sales $65,900 $409,000 Cost of goods sold 45,000 303,000 Selling and administrative expenses 15,100 76,000 Interest expense 650 2,100 Other income (expense) (95) (400) Income tax expense 1,300 6,700 Net income $3,755 $20,800 Balance Sheet Data (End of Year) Current assets $16,000 $49,000 Noncurrent assets 25,700 123,000 Total assets $41,700 $172,000 Current liabilities $11,000 $56,000 Long-term debt 17,300 45,000 Total stockholders' equity 13,400 71,000 Total liabilities and stockholders' equity $41,700 $172,000 Beginning-of-Year Balances Total assets $45,000 $163,000 Total stockholders' equity 12,500 66,000 Current liabilities 10,000 58,000 Total liabilities 32,500 97,000 Other Data Average net accounts receivable $7,700 $3,800 Average inventory 7,200 33,600 Net cash provided by operating activities 5,600 26,200 Capital expenditures 1,700 11,500 Dividends 460 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 (1) Current ratio (2) Accounts receivable turnover (3) Average collection period (4) Inventory turnover (5) Days in inventory (6) Profit margin Target :1 times Wal-Mart :1 times days days times times days % days de % (7) Asset turnover times times (8) Return on assets % % Return on common stockholders' (9) % % equity (10) Debt to assets ratio % de % (11) Times interest earned times times (12) 121 Free cash flow +A
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