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(1) Current ratio (2) Accounts receivable turnover (3) Average collection period

(1) Current ratio (2) Accounts receivable turnover (3) Average collection period

Essentials Of Investments
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
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
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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