Selected hypothetical financial data of Target and Wal-Mart for 2022 are presented here (in millions).
Selected hypothetical financial data of Target and Wal-Mart for 2022 are presented here (in millions).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Selected hypothetical financial data of Target and Wal-Mart for 2022 are presented here (in millions).
Target
Corporation |
Wal-Mart
Stores, Inc. |
||||||
---|---|---|---|---|---|---|---|
Income Statement Data for Year
|
|||||||
Net sales
|
$65,300
|
$417,000
|
|||||
Cost of goods sold
|
45,000
|
301,000
|
|||||
Selling and administrative expenses
|
14,000
|
79,000
|
|||||
Interest expense
|
660
|
1,800
|
|||||
Other income (expense)
|
(85
|
)
|
(380
|
)
|
|||
Income tax expense
|
1,500
|
7,100
|
|||||
Net income
|
$ 4,055
|
$ 27,720
|
|||||
(End of Year) |
|||||||
Current assets
|
$16,000
|
$50,000
|
|||||
Noncurrent assets
|
27,400
|
121,000
|
|||||
Total assets
|
$43,400
|
$171,000
|
|||||
Current liabilities
|
$11,000
|
$54,000
|
|||||
Long-term debt
|
17,800
|
43,000
|
|||||
Total
|
14,600
|
74,000
|
|||||
Total liabilities and stockholders’ equity
|
$43,400
|
$171,000
|
|||||
Beginning-of-Year Balances
|
|||||||
Total assets
|
$45,000
|
$162,000
|
|||||
Total stockholders’ equity
|
12,800
|
66,000
|
|||||
Current liabilities
|
10,800
|
54,000
|
|||||
Total liabilities
|
32,200
|
96,000
|
|||||
Other Data
|
|||||||
Average net
|
$7,600
|
$3,800
|
|||||
Average inventory
|
7,100
|
33,200
|
|||||
Net cash provided by operating activities
|
5,600
|
27,400
|
|||||
Capital expenditures
|
1,600
|
12,100
|
|||||
Dividends
|
470
|
4,200
|
For each company, compute the following ratios. (Round
Ratio |
Target
|
Wal-Mart
|
||||||
---|---|---|---|---|---|---|---|---|
(1) |
Current ratio
|
enter the current ratio
|
:1 |
enter the current ratio
|
:1 | |||
(2) |
Accounts receivable turnover
|
enter accounts receivable turnover in times
|
times |
enter accounts receivable turnover in times
|
times | |||
(3) |
Average collection period
|
enter average collection period in days
|
days |
enter average collection period in days
|
days | |||
(4) |
Inventory turnover
|
enter inventory turnover in times
|
times |
enter inventory turnover in times
|
times | |||
(5) |
Days in inventory
|
enter days in inventory ratio
|
days |
enter days in inventory ratio
|
days | |||
(6) |
Profit margin
|
enter percentages
|
% |
enter percentages
|
% | |||
(7) |
Asset turnover
|
enter asset turnover in times
|
times |
enter asset turnover in times
|
times | |||
(8) |
Return on assets
|
enter percentages
|
% |
enter percentages
|
% | |||
(9) |
Return on common stockholders’ equity
|
enter percentages
|
% |
enter percentages
|
% | |||
(10) |
Debt to assets ratio
|
enter percentages
|
% |
enter percentages
|
% | |||
(11) |
Times interest earned
|
enter times interest earned
|
times |
enter times interest earned
|
times | |||
(12) |
Free cash flow
|
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