Selected financial data of two intense competitors in a recent year are presented below in millions of dollars.

\section*{Instructions}

(a) For each company, compute the following ratios:
(1) Current (7) Return on common stockholders' equity (2) Receivables turnover (8) Debt to total assets (3) Inventory turnover (9) Times interest earned (4) Profit margin (10) Current cash debt coverage (5) Asset turnover (11) Cash return on sales (6) Return on assets (12) Cash debt coverage

(b) Compare the liquidity, profitability, and solvency of the two companies.
Compute numerous ratios. (SO 5)

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Kmart Corporation Wal-Mart Stores, Inc. Income Statement Data for Year Net sales $34,025 $82,494 Cost of goods sold 25,992 65,586 Selling and administrative expenses 7,701 12,858 Interest expense 494 706 Other income (net) 572 918 Income taxes 114 1,581 Net income $ 296 $ 2,681 Balance Sheet Data (End-of-Year) Current assets Property, plant, and equipment (net) Total assets Current liabilities Long-term debt Total stockholders' equity Total liabilities and stockholders' equity $9,187 $15,338 7,842 17,481 17,029 32,819 5,626 9,973 5,371 10,120 6,032 12,726 $17,029 $32,819 Beginning-of-Year Balances Total assets Total stockholders' equity $17,504 $26,441 6,093 10,753