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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 $65,357 $408,214
Cost of goods sold 45,583 304,657
Selling and administrative expenses 15,101 79,607
Interest expense 707 2,065
Other income (expense) (94) (411)
Income tax expense 1,384 7,139
Net income $ 2,488 $ 14,335

Balance Sheet Data (End of Year)

Current assets $18,424 $48,331
Noncurrent assets 26,109 122,375
Total assets $44,533 $170,706
Current liabilities $11,327 $55,561
Long-term debt 17,859 44,089
Total stockholders equity 15,347 71,056
Total liabilities and stockholders equity $44,533 $170,706

Beginning-of-Year Balances

Total assets $44,106 $163,429
Total stockholders equity 13,712 65,682
Current liabilities 10,512 55,390
Total liabilities 30,394 97,747

Other Data

Average net accounts receivable $7,525 $4,025
Average inventory 6,942 33,836
Net cash provided by operating activities 5,881 26,249
Capital expenditures 1,729 12,184
Dividends 496 4,217

(a) For each company, compute the following ratios. (Enter free cash flow in millions. Round Current ratio to 2 decimal places, e.g. 1.67. Round Debt to assets ratio to 0 decimal places, e.g. 18 or 18%. Round all other answers to 1 decimal place, e.g. 1.6, or 1.6%. Use 365 days for calculation.)

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 $ million $ million

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