Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![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
: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
Customize and control Google Chrome
(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
$
$
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd37da8a3-bf39-4a3e-963c-0eea1271e91d%2F1f628031-8a8d-4fe1-b9a9-b88914304e6c%2F9sv6ex_processed.png&w=3840&q=75)
Transcribed Image Text: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
: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
Customize and control Google Chrome
(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
$
$
%24
![Selected hypothetical financial data of Target and Wal-Mart for 2022 are presented here (in millions).
Wal-Mart
Target
Corporation
Stores, Inc.
Income Statement Data for Year
Net sales
$66,100
$411,000
Cost of goods sold
44,000
302,000
Selling and administrative expenses
15,400
81,000
Interest expense
660
2,100
Other income (expense)
(70 )
(420 )
Income tax expense
1,400
7,300
Net income
$ 4,570
$ 18,180
Balance Sheet Data
(End of Year)
Current assets
$17,000
$49,000
Noncurrent assets
26,800
120,000
Total assets
$43,800
$169,000
Current liabilities
$12,000
$54,000
Long-term debt
17,600
45,000
Total stockholders' equity
14,200
70,000
Total liabilities and stockholders' equity
$43,800
$169,000
Beginning-of-Year Balances
Customize ar
Total assets
$43,000
$162,000
Total stockholders' equity
14,400
66,000
Current liabilities
10,600
57,000
Total liabilities
28,600
96,000
Other Data
Average net accounts receivable
$7,900
$4,200
Average inventory
7,200
33,700
Net cash provided by operating activities
5,800
26,200
Capital expenditures
1,700
12,400
Dividends
460
3,600](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd37da8a3-bf39-4a3e-963c-0eea1271e91d%2F1f628031-8a8d-4fe1-b9a9-b88914304e6c%2F5srqq4t_processed.png&w=3840&q=75)
Transcribed Image Text:Selected hypothetical financial data of Target and Wal-Mart for 2022 are presented here (in millions).
Wal-Mart
Target
Corporation
Stores, Inc.
Income Statement Data for Year
Net sales
$66,100
$411,000
Cost of goods sold
44,000
302,000
Selling and administrative expenses
15,400
81,000
Interest expense
660
2,100
Other income (expense)
(70 )
(420 )
Income tax expense
1,400
7,300
Net income
$ 4,570
$ 18,180
Balance Sheet Data
(End of Year)
Current assets
$17,000
$49,000
Noncurrent assets
26,800
120,000
Total assets
$43,800
$169,000
Current liabilities
$12,000
$54,000
Long-term debt
17,600
45,000
Total stockholders' equity
14,200
70,000
Total liabilities and stockholders' equity
$43,800
$169,000
Beginning-of-Year Balances
Customize ar
Total assets
$43,000
$162,000
Total stockholders' equity
14,400
66,000
Current liabilities
10,600
57,000
Total liabilities
28,600
96,000
Other Data
Average net accounts receivable
$7,900
$4,200
Average inventory
7,200
33,700
Net cash provided by operating activities
5,800
26,200
Capital expenditures
1,700
12,400
Dividends
460
3,600
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