60.1K

Verified Solution

Link Copied!

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			$65,600			$418,000
Cost of goods sold			45,000			310,000
Selling and administrative expenses			14,300			75,000
Interest expense			720			2,200
Other income (expense)			(90	)		(380	)
Income tax expense			1,400			6,900
Net income			$ 4,090			$ 23,520
		Balance Sheet Data (End of Year)
Current assets			$18,000			$47,000
Noncurrent assets			26,100			121,000
Total assets			$44,100			$168,000
Current liabilities			$10,000			$55,000
Long-term debt			18,300			43,000
Total stockholders equity			15,800			70,000
Total liabilities and stockholders equity			$44,100			$168,000
		Beginning-of-Year Balances
Total assets			$44,000			$165,000
Total stockholders equity			13,200			66,000
Current liabilities			10,800			54,000
Total liabilities			30,800			99,000
		Other Data
Average net accounts receivable			$7,900			$4,100
Average inventory			7,100			34,100
Net cash provided by operating activities			5,700			25,900
Capital expenditures			1,600			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

See Answer