The following sheet contains the condensed income statement and the balance sheet for Target Corporation (TGT). The page after that contains the financial ratios for Wal-Mart Stores Inc. (WMT).

a. Using this information and the formula sheet provided, calculate two of the liquidity ratios, two of the leverage ratios, two of the efficiency ratios, and two of the profitability ratios we covered in class for the year 2016 for Target.

b. Correctly interpret the ratios you calculated by providing a written explanation of each ratio and compare them to those of Wal-Mart.

Table 1 - Target Corporation.: Income Statement (millions of dollars) Year ending January 30 Revenues $ Costs and Expenses: Cost of goods sold $ Operating, selling and admin expenses $ Depreciation and amortization $ Interest Costs: 33 Income Before Income Taxes $ Provision for Income Taxes $ Net Income $ 2016 73,785 51,997 14,665 2,213 607 4,923 1,602 3,321 $ 2015 72,618 51,278 14,676 2,129 882 3,653 1,204 2,449 Table 2 - Balance Sheet : Target Corporation ( All figures in millions ) Period Ending : January 30 2016 2015 Current Assets Cash and Cash Equivalents* EA 1 , 038 D 690 3, 008 S Short - Term Investments 1, 520 Net Receivables 375 S EA 379 Inventory EA 8, 601 8 , 282 Other Current Assets EA 1 , 108 2 , 753 Total Current Assets FEA 14 , 130 13 , 624 Long - Term Assets Fixed Assets EA 25 , 217 25, 952 Goodwill and intangible assets 133 EA EA 147 Intangible assets EA 145 155 Other Assets 782 1 , 449 Total Long - Term Assets 26 , 132 S 27, 548 Total Assets D 40, 262 $ 41 , 172 Current Liabilities Accounts Payable* 7, 418 7. 759 Short - Term Debt / Current Portion of Long - Term Debt 815 D 91 Other Current Liabilities 4 , 389 3, 886 Total Current Liabilities $ 12 , 622 S 1 1 , 736 Long - Term Liabilities Long - Term Debt 1 1 , 945 12 , 634 Other Liabilities EA 1 , 875 1 , 645 Deferred income taxes EA 863 EA 1 , 160 Total Long - Term Liabilities EA 14 , 683 S 15 , 439Total Liabilities 27, 305 $ 27, 175 Stockholders' Equity Common Stock 50 53 Additional Paid - in Capital 5. 348 $ 4. 899 Retained Earnings 8, 188 9 , 644 Other Equity ( 629 ) $ \\EA EA ( 599 ) Total Stockholder's Equity 12 , 957 $ 13, 997 Total Liabilities & Equity S 40, 262 S 41, 172Table 3 - Walmart Ratios Wal- Mart 2016 2015 Current Ratio 0. 97 0. 88 Quick Ratio 0 . 22 0 . 25 Long-term debt ratio 20 . 17% 20.40 % Long-term debt to equity ratio 54. 00 % 58. 00 % Times Interest Earned 12.43 12. 01 Inventory turnover 8.11 8. 08 Total assets turnover 2.38 2. 34 Account receivable turnover 72.19 70.85 Net profit margin 5.59% 5. 64% Return on total assets 8. 01 % 7.86% Return on stock holders' equity 20. 76% 21. 00%