Selected financial data of Target Corporation and Wal-Mart Stores, Inc. for a recent year are presented here (in millions). Target Corporation Wal-Mart Stores, Inc. Income Statement Data for Year Net sales $61,471 $374,526 Cost of goods sold 41,895 286,515 Selling and administrative expenses 16,200 70,847 Interest expense 647 1,798 Other income (expense) 1,896 4,273 Income tax expense 1,776 6,908 Net income $2,849 $12,731 Balance Sheet Data (End of Year) Current assets $18,906 $47,585 Noncurrent assets 25,654 115,929 Total assets $44,560 $163,514 Current liabilities $11,782 $58,454 Long-term debt 17,471 40,452 Total stockholders' equity 15,307 64,608 Total liabilities and stockholders' equity $44,560 $163,514 Target Corporation Wal-Mart Stores, Inc. Beginning-of-Year Balances Total assets $37,349 $151,587 Total stockholders' equity 15,633 61,573 Current liabilities 11,117 52,148 Total liabilities 21,716 90,014 Other Data Average net accounts receivable $7,124 $3,247 Average inventory 6,517 34,433 Net cash provided by operating activities 4,125 20,354 For each company, compute the following ratios. (1) Current ratio. (2) Accounts receivable turnover. (3) Average collection period. (4) Inventory turnover.
Selected financial data of Target Corporation and Wal-Mart Stores, Inc. for a recent year are presented here (in millions).
Target Corporation Wal-Mart Stores, Inc.
Income Statement Data for Year
Net sales $61,471 $374,526
Cost of goods sold 41,895 286,515
Selling and administrative expenses 16,200 70,847
Interest expense 647 1,798
Other income (expense) 1,896 4,273
Income tax expense 1,776 6,908
Net income $2,849 $12,731
Current assets $18,906 $47,585
Noncurrent assets 25,654 115,929
Total assets $44,560 $163,514
Current liabilities $11,782 $58,454
Long-term debt 17,471 40,452
Total
Total liabilities and stockholders' equity $44,560 $163,514
Target Corporation Wal-Mart Stores, Inc.
Beginning-of-Year Balances
Total assets $37,349 $151,587
Total stockholders' equity 15,633 61,573
Current liabilities 11,117 52,148
Total liabilities 21,716 90,014
Other Data
Average net
Average inventory 6,517 34,433
Net cash provided by operating activities 4,125 20,354
For each company, compute the following ratios.
(1)
(2) Accounts receivable turnover.
(3) Average collection period.
(4) Inventory turnover.
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