Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Using the EDGAR database at SEC's website, download the Balance Sheet and Income Statement of Walmart, Inc. and Target, Corp., for 2010-2020. Part 1: Calculate

image text in transcribed
image text in transcribed
Using the EDGAR database at SEC's website, download the Balance Sheet and Income Statement of Walmart, Inc. and Target, Corp., for 2010-2020. Part 1: Calculate Profit Margin, Total Asset Turnover, Equity Multiplier, and Return on Equity for each year and each company. Display your results in a summary table. Part 2: Calculate the average, maximum and minimum values of each financial ratio for each company. Display your results in a summary table. Part 3: Using DuPont Analysis, compare and explain the difference between the Return on Equity figures of these companies in 2020. In other words, evaluate the ROE figure and explain the difference through the areas of profitability, asset management, and use of leverage. Part 4: Prepare a graph displaying the value of Return on Equity over the years, for each company. Include a discussion on the trend. \begin{tabular}{|lllllllll|} \hline \multicolumn{10}{|c|}{ Net Income } & & Sales & & Total Assets & \multicolumn{1}{c|}{ Total Equity } \\ \hline 2010 & $ & 14,370 & $ & 405,046 & $ & 170,706 & $ & 72,929 \\ 2011 & $ & 16,389 & $ & 418,952 & $ & 180,782 & $ & 71,247 \\ 2012 & $ & 15,699 & $ & 443,854 & $ & 193,406 & $ & 75,761 \\ 2013 & $ & 16,999 & $ & 465,604 & $ & 203,105 & $ & 81,738 \\ 2014 & $ & 16,022 & $ & 473,076 & $ & 204,751 & $ & 81,339 \\ 2015 & $ & 16,363 & $ & 482,229 & $ & 203,490 & $ & 85,937 \\ 2016 & $ & 14,694 & $ & 478,614 & $ & 199,581 & $ & 83,611 \\ 2017 & $ & 13,643 & $ & 481,317 & $ & 198,825 & $ & 80,535 \\ 2018 & $ & 9,862 & $ & 495,761 & $ & 204,522 & $ & 80,822 \\ 2019 & $ & 6,670 & $ & 510,329 & $ & 219,295 & $ & 79,634 \\ 2020 & $ & 14,881 & $ & 519,926 & $ & 236,495 & $ & 81,552 \\ \hline \end{tabular} \begin{tabular}{|lllllllll|} \hline \multicolumn{8}{|c|}{ Target } \\ \hline & \multicolumn{1}{c}{ Net Income } & & Sales & \multicolumn{3}{c|}{ Total Assets } & Total Equity \\ \hline 2010 & $ & 2,488 & $ & 63,435 & $ & 44,533 & $ & 15,347 \\ 2011 & $ & 2,920 & $ & 65,786 & $ & 43,705 & $ & 15,487 \\ 2012 & $ & 2,929 & $ & 68,466 & $ & 46,630 & $ & 15,821 \\ 2013 & $ & 2,999 & $ & 71,960 & $ & 48,163 & $ & 16,558 \\ 2014 & $ & 1,971 & $ & 71,279 & $ & 44,553 & $ & 16,231 \\ 2015 & $ & (1,636) & $ & 72,618 & $ & 41,404 & $ & 13,997 \\ 2016 & $ & 3,363 & $ & 73,785 & $ & 40,262 & $ & 12,957 \\ 2017 & $ & 2,737 & $ & 69,495 & $ & 37,431 & $ & 10,953 \\ 2018 & $ & 2,914 & $ & 72,714 & $ & 40,303 & $ & 11,651 \\ 2019 & $ & 2,937 & $ & 75,356 & $ & 41,290 & $ & 11,297 \\ 2020 & $ & 3,281 & $ & 78,112 & $ & 42,779 & $ & 11,833 \\ \hline & & & & & & & \\ \hline \end{tabular} Using the EDGAR database at SEC's website, download the Balance Sheet and Income Statement of Walmart, Inc. and Target, Corp., for 2010-2020. Part 1: Calculate Profit Margin, Total Asset Turnover, Equity Multiplier, and Return on Equity for each year and each company. Display your results in a summary table. Part 2: Calculate the average, maximum and minimum values of each financial ratio for each company. Display your results in a summary table. Part 3: Using DuPont Analysis, compare and explain the difference between the Return on Equity figures of these companies in 2020. In other words, evaluate the ROE figure and explain the difference through the areas of profitability, asset management, and use of leverage. Part 4: Prepare a graph displaying the value of Return on Equity over the years, for each company. Include a discussion on the trend. \begin{tabular}{|lllllllll|} \hline \multicolumn{10}{|c|}{ Net Income } & & Sales & & Total Assets & \multicolumn{1}{c|}{ Total Equity } \\ \hline 2010 & $ & 14,370 & $ & 405,046 & $ & 170,706 & $ & 72,929 \\ 2011 & $ & 16,389 & $ & 418,952 & $ & 180,782 & $ & 71,247 \\ 2012 & $ & 15,699 & $ & 443,854 & $ & 193,406 & $ & 75,761 \\ 2013 & $ & 16,999 & $ & 465,604 & $ & 203,105 & $ & 81,738 \\ 2014 & $ & 16,022 & $ & 473,076 & $ & 204,751 & $ & 81,339 \\ 2015 & $ & 16,363 & $ & 482,229 & $ & 203,490 & $ & 85,937 \\ 2016 & $ & 14,694 & $ & 478,614 & $ & 199,581 & $ & 83,611 \\ 2017 & $ & 13,643 & $ & 481,317 & $ & 198,825 & $ & 80,535 \\ 2018 & $ & 9,862 & $ & 495,761 & $ & 204,522 & $ & 80,822 \\ 2019 & $ & 6,670 & $ & 510,329 & $ & 219,295 & $ & 79,634 \\ 2020 & $ & 14,881 & $ & 519,926 & $ & 236,495 & $ & 81,552 \\ \hline \end{tabular} \begin{tabular}{|lllllllll|} \hline \multicolumn{8}{|c|}{ Target } \\ \hline & \multicolumn{1}{c}{ Net Income } & & Sales & \multicolumn{3}{c|}{ Total Assets } & Total Equity \\ \hline 2010 & $ & 2,488 & $ & 63,435 & $ & 44,533 & $ & 15,347 \\ 2011 & $ & 2,920 & $ & 65,786 & $ & 43,705 & $ & 15,487 \\ 2012 & $ & 2,929 & $ & 68,466 & $ & 46,630 & $ & 15,821 \\ 2013 & $ & 2,999 & $ & 71,960 & $ & 48,163 & $ & 16,558 \\ 2014 & $ & 1,971 & $ & 71,279 & $ & 44,553 & $ & 16,231 \\ 2015 & $ & (1,636) & $ & 72,618 & $ & 41,404 & $ & 13,997 \\ 2016 & $ & 3,363 & $ & 73,785 & $ & 40,262 & $ & 12,957 \\ 2017 & $ & 2,737 & $ & 69,495 & $ & 37,431 & $ & 10,953 \\ 2018 & $ & 2,914 & $ & 72,714 & $ & 40,303 & $ & 11,651 \\ 2019 & $ & 2,937 & $ & 75,356 & $ & 41,290 & $ & 11,297 \\ 2020 & $ & 3,281 & $ & 78,112 & $ & 42,779 & $ & 11,833 \\ \hline & & & & & & & \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ISE Financial Accounting

Authors: Robert Libby, Patricia Libby, Frank Hodge Ch

11th Edition

1265083924, 9781265083922

More Books

Students also viewed these Accounting questions