Suppose selected financial data of Target and Wal-Mart for 2017 are presented here (in millions)....
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Accounting
Suppose selected financial data of Target and Wal-Mart for 2017 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 |
(a) For each company, compute the following ratios. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%.)
Ratio | Target | Wal-Mart | ||||||
(1) | Current ratio | ![]() | :1 | ![]() | :1 | |||
(2) | Accounts receivable turnover | ![]() | times | ![]() | times | |||
(3) | Average collection period | ![]() | days | ![]() | days | |||
(4) | Inventory turnover | ![]() | times | ![]() | times | |||
(5) | Days in inventory | ![]() | days | ![]() | days | |||
(6) | Profit margin | ![]() | % | ![]() | % | |||
(7) | Asset turnover | ![]() | times | ![]() | times | |||
(8) | Return on assets | ![]() | % | ![]() | % | |||
(9) | Return on common stockholders equity | ![]() | % | ![]() | % | |||
(10) | Debt to assets ratio | ![]() | % | ![]() | % | |||
(11) | Times interest earned | ![]() | times | ![]() | times | |||
(12) | Free cash flow | $ ![]() | $ ![]() |
( are the questions i answered correct? Im trying to figure out if im doing it right.)
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