Selected hypothetical financial data of Target and Wal-Mart for 2022 are presented here (in millions)....

50.1K

Verified Solution

Question

Accounting

Selected hypothetical financial data of Target and Wal-Mart for 2022 are presented here (in millions).

Target Corporation

Wal-Mart Stores, Inc.

Income Statement Data for Year

Net sales

$66,400

$407,000

Cost of goods sold

46,000

306,000

Selling and administrative expenses

15,500

79,000

Interest expense

670

1,800

Other income (expense)

(85

)

(390

)

Income tax expense

1,300

7,500

Net income

$ 2,845

$ 12,310

Balance Sheet Data (End of Year)

Current assets

$19,000

$47,000

Noncurrent assets

27,300

123,000

Total assets

$46,300

$170,000

Current liabilities

$11,000

$56,000

Long-term debt

18,100

45,000

Total stockholders equity

17,200

69,000

Total liabilities and stockholders equity

$46,300

$170,000

Beginning-of-Year Balances

Total assets

$43,000

$164,000

Total stockholders equity

14,300

66,000

Current liabilities

10,800

57,000

Total liabilities

28,700

98,000

Other Data

Average net accounts receivable

$7,900

$4,100

Average inventory

6,800

34,000

Net cash provided by operating activities

5,600

26,300

Capital expenditures

1,800

11,500

Dividends

520

4,200

For each company, compute the following ratios. (Round current ratio answers to 2 decimal places, e.g. 15.50, debt to assets ratio and free cash flow answers to 0 decimal places, e.g. 5,275 and all answers to 1 decimal place, e.g. 1.8 or 1.83%.)

Ratio

Target

Wal-Mart

(1)

Current ratio

enter the current ratio

:1

enter the current ratio

:1
(2)

Accounts receivable turnover

enter accounts receivable turnover in times

times

enter accounts receivable turnover in times

times
(3)

Average collection period

enter average collection period in days

days

enter average collection period in days

days
(4)

Inventory turnover

enter inventory turnover in times

times

enter inventory turnover in times

times
(5)

Days in inventory

enter days in inventory ratio

days

enter days in inventory ratio

days
(6)

Profit margin

enter percentages

%

enter percentages

%
(7)

Asset turnover

enter asset turnover in times

times

enter asset turnover in times

times
(8)

Return on assets

enter percentages

%

enter percentages

%
(9)

Return on common stockholders equity

enter percentages

%

enter percentages

%
(10)

Debt to assets ratio

enter percentages

%

enter percentages

%
(11)

Times interest earned

enter times interest earned

times

enter times interest earned

times
(12)

Free cash flow

$enter a dollar amount

$enter a dollar amount

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students