Find the working captital, Current ration :1, debt to assets ratio, free cash flow, earning per share for both companies. And aslo which company has better liquidity? and which company has better solvency. Wal-MartTarget(1/31/22)(1/31/22)Income Statement Data forYearNet sales$66,000$428,000Cost of goods sold43,560321,000Selling and administrative expenses16,50081,320Interest expense1,3202,140Other income204,000Income taxes1,6249,639Net income$ 3,016$ 17,901TargetWal-MartBalance Sheet Data (End ofYear)Current assets$19,800$ 45,580Noncurrent assets29,000112,000Total assets$48,800$157,580Current liabilities$11,000$ 53,000 Current liabilities$11,000$ 53,000Long-term liabilities22,18433,669Total stockholders' equity15,61670,911Total liabilities and stockholders' equity$48,800$157,580Net cash provided by operating activities$4,400$23,100Cash paid for capital expenditures$3,400$12,000Dividends declared and paid on common stock$460$3,600Weighted-average common shares outstanding (millions)5802,550For each company, compute these values and ratios. (All dollars are in millions.) (Round Current ratio and Earnings per share to 2decimal places, e.g. 15.25 and Debt to assets ratio to 1 decimal place, e.g. 78.9%. If answer is negative enter it with anegative sign preceding the number e.g. -15,000 or in parentheses e.g. (15,000).)TargetWal-Mart(a)Working capital$(b) Current ratio:1:1(c)Debt to assets ratio%%%24

Ratio analysis refers to the analysis of various piece of financial information int he financial…

Find the working captital, Current ration :1, debt to assets ratio, free cash flow, earning per share for both companies. And aslo which company has better liquidity? and which company has better solvency.

Find the working captital, Current ration :1, debt to assets ratio, free cash flow, earning per share for both companies. And aslo which company has better liquidity? and which company has better solvency.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Find the working captital, Current ration :1, debt to assets ratio, free cash flow, earning per share for both companies.

And aslo which company has better liquidity? and which company has better solvency.

Wal-Mart
Target
(1/31/22)
(1/31/22)
Income Statement Data for
Year
Net sales
$66,000
$428,000
Cost of goods sold
43,560
321,000
Selling and administrative expenses
16,500
81,320
Interest expense
1,320
2,140
Other income
20
4,000
Income taxes
1,624
9,639
Net income
$ 3,016
$ 17,901
Target
Wal-Mart
Balance Sheet Data (End of
Year)
Current assets
$19,800
$ 45,580
Noncurrent assets
29,000
112,000
Total assets
$48,800
$157,580
Current liabilities
$11,000
$ 53,000

Current liabilities
$11,000
$ 53,000
Long-term liabilities
22,184
33,669
Total stockholders' equity
15,616
70,911
Total liabilities and stockholders' equity
$48,800
$157,580
Net cash provided by operating activities
$4,400
$23,100
Cash paid for capital expenditures
$3,400
$12,000
Dividends declared and paid on common stock
$460
$3,600
Weighted-average common shares outstanding (millions)
580
2,550
For each company, compute these values and ratios. (All dollars are in millions.) (Round Current ratio and Earnings per share to 2
decimal places, e.g. 15.25 and Debt to assets ratio to 1 decimal place, e.g. 78.9%. If answer is negative enter it with a
negative sign preceding the number e.g. -15,000 or in parentheses e.g. (15,000).)
Target
Wal-Mart
(a)
Working capital
$
(b) Current ratio
:1
:1
(c)
Debt to assets ratio
%
%
%24

Definition Definition Cash that is left over after a company has paid for its operating and capital expenses. Unlike net income or earnings, free cash flow excludes non-cash expenses of the income statement and includes the expenditures on equipment and assets. Free cash flow also helps potential shareholders to evaluate how quickly the company can pay interest and dividends.

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