Suppose selected financial data of Target and Wal-Mart for 2019 are presented here (in millions). Instructions (a)
Question:
Suppose selected financial data of Target and Wal-Mart for 2019 are presented here (in millions).
Instructions
(a) For each company, compute the following ratios.
(1) Current ratio.
(2) Accounts receivable turnover.
(3) Average collection period.
(4) Inventory turnover.
(5) Days in inventory.
(6) Profit margin.
(7) Asset turnover.
(8) Return on assets.
(9) Return on common stockholders' equity.
(10) Debt to assets ratio.
(11) Times interest earned.
(12) Free cash flow.
(b) Compare the liquidity, solvency, and profitability of the two companies.
Transcribed Image Text:
Target Wal-Mart Stores, Inc Income Statement Data for Year Corporation Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income (expense) Income tax expense Net income S65,357 45,583 15,101 707 (94) 1,384 $2,488 $408,214 304,657 79,607 2,065 (411) 7,139 $14,335 Balance Sheet Data (End of Year) $18,424 26,109 $44,533 $ 48,331 Current assets Noncurent assets Total assets Current liabilities Long-term debt Total stockholders' equity Total liabilities and stockholders' equity 122,375 $170,706 $11,327 17,859 15,347 $44,533 $55,561 44,089 71,056 $170,706 Beginning-of-Year Balances $163,429 65,682 Total assets Total stockholders' equity Current liabilities Total liabilities $44,106 13,712 10,512 30,394 55,390 97,747 Other Data Average net accounts receivable Average inventory Net cash provided by operating activities Capital expenditur Dividends 7,525 6,942 5,881 1,729 496 $4,025 33,836 26,249 12,184 4,217
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 83% (6 reviews)
a a 44533 44106 2 d 170706 163429 2 b 15347 13712 2 e 71056 65682 2 c 2488 1384 707 f 14335 7139 206...View the full answer
Answered By
Anthony Ngatia
I have three academic degrees i.e bachelors degree in Education(English & Literature),bachelors degree in business administration(entrepreneurship option),and masters degree in business administration(strategic management) in addition to a diploma in business management.I have spent much of my life in the academia where I have taught at high school,middle level colleges level and at university level.I have been an active academic essays writer since 2011 where I have worked with some of the most reputable essay companies based in Europe and in the US.I have over the years perfected my academic writing skills as a result of tackling numerous different assignments.I do not plagiarize and I maintain competitive quality in all the assignments that I handle.I am driven by strong work ethics and a firm conviction that I should "Do Unto others as I would Like them to do to me".
4.80+
76+ Reviews
152+ Question Solved
Related Book For
Financial Accounting
ISBN: 978-1119305736
10th edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel
Question Posted:
Students also viewed these Cost Accounting questions
-
Suppose selected financial data of Target and Wal-Mart for 2014 are presented here (in millions). Instructions (a) For each company, compute the following ratios. (1) Current ratio. (2) Accounts...
-
Suppose selected financial data of Target and Wal-Mart for 2017 are presented here (in millions). Instructions (a) For each company, compute the following ratios. (1) Current ratio. (2) Accounts...
-
Selected financial data of Target and Wal-Mart for a recent year are presented here (in millions). Instructions (a) For each company, compute the following ratios. (1) Current. (2) Receivables...
-
Solve the equation (a) Graphically, (b) Numerically, and (c) Symbolically. Then solve the related inequality. |4x7| = 5, |4x - 7| 5
-
This problem helps you develop skill in recording transactions by using a companys actual account titles. Refer to the Amazon.com financial statements in Appendix A. Note that large companies like...
-
1. An aerobic complete-mix reactor (no recycle) with a volume of 1000 L receives a 500 L/d wastewater flow and has an effluent soluble COD concentration of 10mg/L. For one of the wastewaters with the...
-
In 2013, Deutsche Post DHL acquired 49 percent of the shares of Compador Technologies GmbH, Berlin, which develops sorting machines and software applications for mail services. The acquisition cost...
-
(Kellogg's) acquired 75% of the outstanding stock of Wholesome & Hearty Foods ("Wholesome") at the end of 2007, for cash and stock totaling $120 million. Assume that Wholesome's assets and...
-
Please help to answer the following questions. Thank you for your attention and time. 53/ The current ratio is used by banks when assessing the ability of a company to pay its debts. The current r...
-
Edgeworth Box Corporation manufactures a variety of special packaging boxes used in the pharmaceutical industry. The company's Dallas plant is semiautomated, but the special nature of the boxes...
-
The following financial information is for Priscoll Company. Additional information: 1. Inventory at the beginning of 2018 was $115,000. 2. Accounts receivable (net) at the beginning of 2018 were...
-
You are a loan officer for White Sands Bank of Taos. Paul Jason, president of P. Jason Corporation, has just left your office. He is interested in an 8-year loan to expand the company's operations....
-
DP is considering whether to purchase a piece of land close to a major city airport. The land will be used to provide 600 car parking spaces. The cost of the land is $6 000 000 but further...
-
In accounting for depreciation on equipment, what is the name of the contra asset account?
-
A list of assets, liabilities, and owners equity of a business entity as of a specific date is: A. a balance sheet B. an income statement C. a retained earnings statement D. a statement of cash flows
-
The going concern concept of accounting assumes that a business will continue in operation for an indefinite period of time. If there is strong evidence that a business is planning on discontinuing...
-
If a company takes a large restructuring charge, what is the effect on the company's current income statements versus future ones?
-
Name the three types of activities reported in the statement of cash flows.
-
Adrenaline Entertainment is struggling financially and its CFO, David Plesko, is starting to feel the heat. Back on January 1, 2020, Adrenaline Entertainment issued $100 million of 6% bonds, due in...
-
Question 6.10 Current and deferred tax worksheets and tax entries From the hip Ltd?s statement of profit or loss for the year ended 30 June 2007 and extracts from its statements of financial position...
-
What is the difference between a debit card sale and a bank credit card sale to a retailer? To the customer?
-
Over-the-counter cash receipts require special care. Explain the procedures that should be followed at the end of the day (or shift) to ensure proper internal control?
-
Nathan McPhail is the new owner of Liberty Parking, a parking garage. He has heard about internal control but is not clear about its importance for his business. Explain to Nathan the six types of...
-
Accounting harmonisation involves: Select one: a. Increased lobbying on proposed accounting standards b. Convergence of practices c. Adoption of one set of standards across the globe without any...
-
All of these are characteristics of a leveraged buyout except- A. Issue AAA rated equity securities B. borrow money (use debt) C. Use target company's assets and cash flow as collateral D. Take the...
-
Chapter 10 Homework Match the following terms with their definitions (not every letter is used) 1. 2. 3. 4. 5. Outstanding stock Paid-in Capital Authorized stock Treasury stock Issued stock a. The...
Study smarter with the SolutionInn App