INCOME STATEMENT Net sales Membership & other income Total revenues Cost of sales Gross Margin Selling, general & administrative expenses Operating Income BALANCE SHEET Assets Cash & cash equivalents Receivables, net Inventories Retailer 1 Common Size $ Millions 605881 5408 Financials% $ Millions Retailer 2 Common Size Financials % Retailer 3 $ Millions Common Size Financials % 100.0% 0.9% 237710 4580 100.0% 1.9% 107588 100.0% 1532 1.4% 611289 100.9% 242290 101.9% 109120 101.4% 463721 76.5% 212586 89.4% 82229 76.4% 147586 24.4% 29704 12.5% 26891 25.0% 12714 2.1% 21590 9.1% 23043 21.4% 20428 3.4% 8114 3.4% 3848 3.6% 8625 3.5% 15234 22.1% 2229 4.2% 7933 3.3% 2285 3.3% 1695 3.2% 56576 23.3% 16651 24.1% 13499 25.3% Other current assets 2521 1.0% 1709 2.5% 423 0.8% Total current assets 75655 31.1% 35879 52.0% 17846 33.5% Fixed/ Long Term Assets 167542 68.9% 33115 48.0% 35489 66.5% Total Assets 243197 100.0% 68994 100.0% 53335 100.0% Liabilities Total current liabilities Long Term Liabilities Total Liabilities 92198 37.9% 6254 9.1% 19500 36.6% 67245 27.7% 37682 54.6% 22603 42.4% 159443 65.6% 43936 63.7% 42103 78.9% Total Equity 83754 34.4% 25058 36.3% 11232 21.1% Total Liabilities + Equity 243197 100.0% 68994 100.0% 53335 100.0% Complete the Common Size Financial Statements for all three retailers. (See Ch 2 p 69-71). Calculate % to 1 decimal point. Example 23.1% Calculate the following Financial Ratios for all three retailers (See Apendix to Ch 2 p 82-85) Profitability Asset Productivity Financial Leverage ROE 0.034 0.034 0.036 2.491 3.445 2.017 2.904 2.753 4.748 21.1% 32.1% 31.3%

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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Related questions
Question
100%

Which retailer do you think is mosy likely Walmart, which one is Costco, and which ones is Target? and why do you think that based on the finanacials? 

INCOME STATEMENT
Net sales
Membership & other income
Total revenues
Cost of sales
Gross Margin
Selling, general & administrative expenses
Operating Income
BALANCE SHEET
Assets
Cash & cash equivalents
Receivables, net
Inventories
Retailer 1 Common Size
$ Millions
605881
5408
Financials%
$ Millions
Retailer 2
Common Size
Financials %
Retailer 3
$ Millions
Common Size
Financials %
100.0%
0.9%
237710
4580
100.0%
1.9%
107588
100.0%
1532
1.4%
611289
100.9%
242290
101.9%
109120
101.4%
463721
76.5%
212586
89.4%
82229
76.4%
147586
24.4%
29704
12.5%
26891
25.0%
12714
2.1%
21590
9.1%
23043
21.4%
20428
3.4%
8114
3.4%
3848
3.6%
8625
3.5%
15234
22.1%
2229
4.2%
7933
3.3%
2285
3.3%
1695
3.2%
56576
23.3%
16651
24.1%
13499
25.3%
Other current assets
2521
1.0%
1709
2.5%
423
0.8%
Total current assets
75655
31.1%
35879
52.0%
17846
33.5%
Fixed/ Long Term Assets
167542
68.9%
33115
48.0%
35489
66.5%
Total Assets
243197
100.0%
68994
100.0%
53335
100.0%
Liabilities
Total current liabilities
Long Term Liabilities
Total Liabilities
92198
37.9%
6254
9.1%
19500
36.6%
67245
27.7%
37682
54.6%
22603
42.4%
159443
65.6%
43936
63.7%
42103
78.9%
Total Equity
83754
34.4%
25058
36.3%
11232
21.1%
Total Liabilities + Equity
243197
100.0%
68994
100.0%
53335
100.0%
Complete the Common Size Financial Statements for all
three retailers. (See Ch 2 p 69-71). Calculate % to 1 decimal
point. Example 23.1%
Calculate the following Financial Ratios for all three retailers
(See Apendix to Ch 2 p 82-85)
Profitability
Asset Productivity
Financial Leverage
ROE
0.034
0.034
0.036
2.491
3.445
2.017
2.904
2.753
4.748
21.1%
32.1%
31.3%
Transcribed Image Text:INCOME STATEMENT Net sales Membership & other income Total revenues Cost of sales Gross Margin Selling, general & administrative expenses Operating Income BALANCE SHEET Assets Cash & cash equivalents Receivables, net Inventories Retailer 1 Common Size $ Millions 605881 5408 Financials% $ Millions Retailer 2 Common Size Financials % Retailer 3 $ Millions Common Size Financials % 100.0% 0.9% 237710 4580 100.0% 1.9% 107588 100.0% 1532 1.4% 611289 100.9% 242290 101.9% 109120 101.4% 463721 76.5% 212586 89.4% 82229 76.4% 147586 24.4% 29704 12.5% 26891 25.0% 12714 2.1% 21590 9.1% 23043 21.4% 20428 3.4% 8114 3.4% 3848 3.6% 8625 3.5% 15234 22.1% 2229 4.2% 7933 3.3% 2285 3.3% 1695 3.2% 56576 23.3% 16651 24.1% 13499 25.3% Other current assets 2521 1.0% 1709 2.5% 423 0.8% Total current assets 75655 31.1% 35879 52.0% 17846 33.5% Fixed/ Long Term Assets 167542 68.9% 33115 48.0% 35489 66.5% Total Assets 243197 100.0% 68994 100.0% 53335 100.0% Liabilities Total current liabilities Long Term Liabilities Total Liabilities 92198 37.9% 6254 9.1% 19500 36.6% 67245 27.7% 37682 54.6% 22603 42.4% 159443 65.6% 43936 63.7% 42103 78.9% Total Equity 83754 34.4% 25058 36.3% 11232 21.1% Total Liabilities + Equity 243197 100.0% 68994 100.0% 53335 100.0% Complete the Common Size Financial Statements for all three retailers. (See Ch 2 p 69-71). Calculate % to 1 decimal point. Example 23.1% Calculate the following Financial Ratios for all three retailers (See Apendix to Ch 2 p 82-85) Profitability Asset Productivity Financial Leverage ROE 0.034 0.034 0.036 2.491 3.445 2.017 2.904 2.753 4.748 21.1% 32.1% 31.3%
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