Target Corporation Walmart Inc. Income Statement Data for Year Net sales $65,600 $410,000 Cost of goods sold 44,000 308,000 Selling and administrative expenses 14,600 75,000 Interest expense 690 2,100 Other income (expense) (90) (420) Income tax expense 1,400 7,300 Net income $4,820 $17,180 Balance Sheet Data (End of Year) Current assets $17,000 $48,000 Noncurrent assets 26,700 120,000 Total assets $43,700 $168,000 Current liabilities $11,000 $56,000 Long-term debt 17,000 45,000 Total stockholders' equity 15,700 67,000 Total liabilities and stockholders' equity $43,700 $168,000 Beginning-of-Year Balances Total assets $45,000 $165,000 Total stockholders' equity 13,600 66,000 Current liabilities 10,000 58,000 Total liabilities 31,400 99,000 Other Data Average net accounts receivable $7,800 $4,000 Average inventory 6,900 34,500 Net cash provided by operating activities 5,700 26,900 Capital expenditures 1,800 12,400 Cash dividends paid 450 3,600 For each company, compute the following ratios. Assume all sales were on credit. (Round current ratio to 2 decimal places e.g. 1.85 and free cash flow to 0 decimal places and all other answers to 1 decimal place, e.g. 1.8 or 1.8%.) Ratio Target Walmart (1) Current ratio 1.63 :1 0.87 :1 (2) Accounts receivable turnover 8.6 times 104.4 times (3) Average collection period 42 days 3.6 days (4) Inventory turnover 6.6 times 9.0 times (5) Days in inventory 55.3 days 40.6 days (6) Profit margin 3.8 % 3.5 % (7) Asset turnover 1.5 times 2.4 times Return on (8) 5.6 % 8.6 % assets (9) Return on common stockholders' equity 17.1 % 21 % (10) Debt to assets ratio 66 % 58 % (11) Times interest earned 11.4 times 6.5 times (12) Free cash flow $ 9848 $ 3656 e Textbook and Media Save for Later Attempts: unlimited Submit