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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

$66,600

$407,000

Cost of goods sold

45,000

305,000

Selling and administrative expenses

14,900

79,000

Interest expense

730

1,800

Other income (expense)

(75)

(390)

Income tax expense

1,500

7,400

Net income

$4,395

$13,410

Balance Sheet Data (End of Year)

Current assets

$18,000

$50,000

Noncurrent assets

26,100

121,000

Total assets

$44,100

$171,000

Current liabilities

$10,000

$55,000

Long-term debt

17,200

45,000

Total stockholders equity

16,900

71,000

Total liabilities and stockholders equity

$44,100

$171,000

Beginning-of-Year Balances

Total assets

$45,000

$163,000

Total stockholders equity

13,900

64,000

Current liabilities

10,900

54,000

Total liabilities

31,100

99,000

Other Data

Average net accounts receivable

$7,900

$3,800

Average inventory

6,800

34,200

Net cash provided by operating activities

5,600

26,800

Capital expenditures

1,600

11,600

Dividends

520

4,200

image text in transcribed

(a) For each company, compute the following ratios. (Round all answers to 2 decimal places, eg. 1.85 or 1.85%.) Target Wal-Mart Ratio Current ratio (1) 18 :1 91 :1 (2) 8.43 times 107.11 times (3) 43 days 3.41 days Accounts receivable turnover Average collection period Inventory turnover Days in inventory (4) 6.62 times 8.92 times (5) 55.14 days 40.92 days (6) Profit margin 6.59 3.29 % (7) Asset turnover times times (8) % (9) % Return on assets Return on common stockholders' equity Debt to assets ratio Times interest earned (10) % (11) times times (12) Free cash flow

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