Selected financial data of Target and Wal-Mart for 2017 arebelow (in millions).

	Target	Wal-Mart
	Income Statement Data for Year
Net sales	$65,357	$408,214
Cost of goods sold	45,583	304,657
Selling and administrative expenses	15,101	79,607
Interest expense	707	2,065
Other income (expense)	(94)	(411)
Income tax expense	1,384	7,139
Net income	$ 2,488	$ 14,335
	Balance Sheet Data (End of Year)
Current assets	$18,424	$ 48,331
Noncurrent assets	26,109	122,375
Total assets	$44,533	$170,706
Current liabilities	$11,327	$ 55,561
Long-term debt	17,859	44,089
Total stockholders’ equity	15,347	71,056
Total liabilities and stockholders’ equity	$44,533	$170,706
	Beginning-of-Year Balances
Total assets	$44,106	$163,429
Total stockholders’ equity	13,712	65,682
Current liabilities	10,512	55,390
Total liabilities	30,394	97,747
	Other Data
Average net accounts receivable	$ 7,525	$ 4,025
Average inventory	6,942	33,836
Net cash provided by operating activities	5,881	26,249
Capital expenditures	1,729	12,184
Dividends	496	4,217

(a) For each company, compute the following ratios.

Ratio	Target	Wal-Mart
(1) Current ratio.	1.626556017	0.869872752
(2) Accounts receivable turnover.	8.685315615	101.4196273
(3) Average collection period.	42.02495525	3.598908906
(4) Inventory turnover.	6.566263325	9.003930725
(5) Days in inventory.	55.58717066	40.53785076
(6) Gross profit margin %	4%	4%
(7) Return on assets (use net income).	6%	9%
(8) Debt to assets ratio.	66%	58%

Note: Gross profit margin % = (Revenues - COGS)/Revenues, orgross margin/revenues

(b) Below, briefly compare the two companies in terms ofliquidity (items 1-5), solvency (item 8), and profitability (items6, 7). By briefly, I mean 1 -3 sentences per category.

Liquidity:

Solvency:

Profitability: