Selected hypothetical financial data of Target and Wal-Mart for2022 are presented here (in millions). Target Corporation Wal-MartStores, Inc. Income Statement Data for Year Net sales $66,600$407,000 Cost of goods sold 45,000 305,000 Selling andadministrative expenses 14,900 79,000 Interest expense 730 1,800Other income (expense) (75 ) (390 ) Income tax expense 1,500 7,400Net income $ 4,395 $ 13,410 Balance Sheet Data (End of Year)Current assets $18,000 $50,000 Noncurrent assets 26,100 121,000Total assets $44,100 $171,000 Current liabilities $10,000 $55,000Long-term debt 17,200 45,000 Total stockholders’ equity 16,90071,000 Total liabilities and stockholders’ equity $44,100 $171,000Beginning-of-Year Balances Total assets $45,000 $163,000 Totalstockholders’ equity 13,900 64,000 Current liabilities 10,90054,000 Total liabilities 31,100 99,000 Other Data Average netaccounts receivable $7,900 $3,800 Average inventory 6,800 34,200Net cash provided by operating activities 5,600 26,800 Capitalexpenditures 1,600 11,600 Dividends 520 4,200 For each company,compute the following ratios. (Round current ratio answers to 2decimal places, e.g. 15.50, debt to assets ratio and free cash flowanswers to 0 decimal places, e.g. 5,275 and all answers to 1decimal 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 turnoverin times times enter accounts receivable turnover in times times(3) Average collection period enter average collection period indays days enter average collection period in days days (4)Inventory turnover enter inventory turnover in times times enterinventory turnover in times times (5) Days in inventory enter daysin inventory ratio days enter days in inventory ratio days (6)Profit margin enter percentages % enter percentages % (7) Assetturnover enter asset turnover in times times enter asset turnoverin times times (8) Return on assets enter percentages % enterpercentages % (9) Return on common stockholders’ equity enterpercentages % enter percentages % (10) Debt to assets ratio enterpercentages % enter percentages % (11) Times interest earned entertimes interest earned times enter times interest earned times (12)Free cash flow $enter a dollar amount $enter a dollar amount
