Prepare common-size income statements for Wal-Mart and Starbucks using the January 2014 information for Walmart and...

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Finance

Prepare common-size income statements for Wal-Mart andStarbucks using the January 2014 information for Walmart and yournew pro forma September 2013 information for Starbucks provided inProblems 5 and 6.Which company is doing a better job of gettingsales dollars to net income? Where is the one company having anadvantage over the other company in turning revenue into netincome?
Wal-Mart
Starbucks
Account
Jan. 31, 2013
Sep. 30, 2013
Sales
$476,294
$14,892
COGS
$358,069
$6,382
SG&A
$91,763
$5,929
EBIT
$26,462
$2,581
Interest
$2,335
$28
Taxes
$8,105
$945
Net Income
$16,022
$1,608
SDJ, Inc., has net working capital of $1,050, currentliabilities of $4,300, and inventory of $1,300. What is the currentratio? What is the quick ratio?
Music Row, Inc. has sales of $32 million, total assets of $43million, and total debt of $9 million. If the profit margin is 7%,what is net income? What is ROA? What is ROE?
Bethesda Co. had additions to retained earnings for the yearjust ended of $275,000. The firm paid out $150,000 in cashdividends, and it has ending total equity of $6 million. IfBethesda currently has 125,000 shares of common stock outstanding,what are earnings per share? Dividends per share? Book value pershare? If the stock currently sells for $95 per share, what is themarket to book ratio? The price earnings ratio?

Answer & Explanation Solved by verified expert

3.6 Ratings (336 Votes)

As per rules I am answering the first 4 subparts of the question 1 WalMart Starbucks Account Jan 31 2013 Common Size Sep 30 2013 Common Size Sales 476294 10000 14892 10000 COGS 358069 7518 See Answer

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Prepare common-size income statements for Wal-Mart andStarbucks using the January 2014 information for Walmart and yournew pro forma September 2013 information for Starbucks provided inProblems 5 and 6.Which company is doing a better job of gettingsales dollars to net income? Where is the one company having anadvantage over the other company in turning revenue into netincome?Wal-MartStarbucksAccountJan. 31, 2013Sep. 30, 2013Sales$476,294$14,892COGS$358,069$6,382SG&A$91,763$5,929EBIT$26,462$2,581Interest$2,335$28Taxes$8,105$945Net Income$16,022$1,608SDJ, Inc., has net working capital of $1,050, currentliabilities of $4,300, and inventory of $1,300. What is the currentratio? What is the quick ratio?Music Row, Inc. has sales of $32 million, total assets of $43million, and total debt of $9 million. If the profit margin is 7%,what is net income? What is ROA? What is ROE?Bethesda Co. had additions to retained earnings for the yearjust ended of $275,000. The firm paid out $150,000 in cashdividends, and it has ending total equity of $6 million. IfBethesda currently has 125,000 shares of common stock outstanding,what are earnings per share? Dividends per share? Book value pershare? If the stock currently sells for $95 per share, what is themarket to book ratio? The price earnings ratio?

	Wal-Mart	Starbucks
Account	Jan. 31, 2013	Sep. 30, 2013
Sales	$476,294	$14,892
COGS	$358,069	$6,382
SG&A	$91,763	$5,929
EBIT	$26,462	$2,581
Interest	$2,335	$28
Taxes	$8,105	$945
Net Income	$16,022	$1,608