Selected hypothetical financial data of Target and Wal-Mart for 2022 are presented here (in millions)....
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Accounting
Selected hypothetical financial data of Target and Wal-Mart for 2022 are presented here (in millions).
TargetCorporation
Wal-MartStores, Inc.
Income Statement Data for Year
Net sales
$65,000
$413,000
Cost of goods sold
45,000
301,000
Selling and administrative expenses
14,100
80,000
Interest expense
710
2,000
Other income (expense)
(85
)
(410
)
Income tax expense
1,300
7,500
Net income
$ 3,805
$ 22,090
Balance Sheet Data(End of Year)
Current assets
$19,000
$49,000
Noncurrent assets
25,000
123,000
Total assets
$44,000
$172,000
Current liabilities
$12,000
$54,000
Long-term debt
17,400
43,000
Total stockholders equity
14,600
75,000
Total liabilities and stockholders equity
$44,000
$172,000
Beginning-of-Year Balances
Total assets
$45,000
$162,000
Total stockholders equity
12,900
66,000
Current liabilities
10,300
56,000
Total liabilities
32,100
96,000
Other Data
Average net accounts receivable
$7,700
$4,100
Average inventory
6,800
34,400
Net cash provided by operating activities
5,600
25,500
Capital expenditures
1,800
12,300
Dividends
470
3,600
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
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