Assume selected financial data for Walmart and Target, two close competitors in the retail industry, are as follows: Beginning Accounts Ending Accounts Receivable Net ($ in millions) Sales Receivable $463,854 $6,064 6,653 $6,937 6,427 Walmart Target 79,466 Required: 1-a. Calculate the receivables turnover ratio and average collection period for Walmart and Target. (Enter your answers in millions. Do not round your intermediate calculations and round your answers to 1 decimal place.) Receivables Turnover Ratio Receivables Turnover Ratio Walmart times Target 0 times Average Collection Period Average Collection Period
Assume selected financial data for Walmart and Target, two close competitors in the retail industry, are as follows: Beginning Accounts Ending Accounts Receivable Net ($ in millions) Sales Receivable $463,854 $6,064 6,653 $6,937 6,427 Walmart Target 79,466 Required: 1-a. Calculate the receivables turnover ratio and average collection period for Walmart and Target. (Enter your answers in millions. Do not round your intermediate calculations and round your answers to 1 decimal place.) Receivables Turnover Ratio Receivables Turnover Ratio Walmart times Target 0 times Average Collection Period Average Collection Period
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Assume selected financial data for Walmart and Target, two close competitors in the retail industry, are as follows:
| ($ in millions) | Net Sales | Beginning Accounts Receivable | Ending Accounts Receivable |
|----------------------|-----------|-------------------------------|----------------------------|
| **Walmart** | $463,854 | $6,064 | $6,937 |
| **Target** | $79,466 | $6,653 | $6,427 |
**Required:**
1-a. Calculate the receivables turnover ratio and average collection period for Walmart and Target. *(Enter your answers in millions. Do not round your intermediate calculations and round your answers to 1 decimal place.)*
**Receivables Turnover Ratio**
| | | | |
|---------------------|-----------------|---------------|---------------------------------|
| **Walmart** | _____ | / | _____ |
| | = | Receivables | Turnover Ratio |
| **Target** | _____ | / | _____ |
| | = | 0 | times |
**Average Collection Period**
| | | | |
|---------------------|-----------------|---------------|---------------------------------|
| **Walmart** | _____ | / | _____ |
| | = | Average | Collection Period |
| | | | 0 days |
| **Target** | _____ | / | _____ |
| | = | 0 days | |
1-b. Which company maintains a higher receivables turnover?
- [ ] Walmart
- [ ] Target](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7a2072a9-7aab-4b43-b0e1-0ef1854c9c71%2F20ae6c78-5ba4-43b9-909e-297f178218fa%2Ffjq830n_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Assume selected financial data for Walmart and Target, two close competitors in the retail industry, are as follows:
| ($ in millions) | Net Sales | Beginning Accounts Receivable | Ending Accounts Receivable |
|----------------------|-----------|-------------------------------|----------------------------|
| **Walmart** | $463,854 | $6,064 | $6,937 |
| **Target** | $79,466 | $6,653 | $6,427 |
**Required:**
1-a. Calculate the receivables turnover ratio and average collection period for Walmart and Target. *(Enter your answers in millions. Do not round your intermediate calculations and round your answers to 1 decimal place.)*
**Receivables Turnover Ratio**
| | | | |
|---------------------|-----------------|---------------|---------------------------------|
| **Walmart** | _____ | / | _____ |
| | = | Receivables | Turnover Ratio |
| **Target** | _____ | / | _____ |
| | = | 0 | times |
**Average Collection Period**
| | | | |
|---------------------|-----------------|---------------|---------------------------------|
| **Walmart** | _____ | / | _____ |
| | = | Average | Collection Period |
| | | | 0 days |
| **Target** | _____ | / | _____ |
| | = | 0 days | |
1-b. Which company maintains a higher receivables turnover?
- [ ] Walmart
- [ ] Target
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