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 $66,400 $407,000 Cost of goods sold 46,000 306,000 Selling and administrative expenses 15,500 79,000 Interest expense 670 1,800 Other income (expense) (85 ) (390 ) Income tax expense 1,300 7,500 Net income $ 2,845 $ 12,310 Balance Sheet Data (End of Year) Current assets $19,000 $47,000 Noncurrent assets 27,300 123,000 Total assets $46,300 $170,000 Current liabilities $11,000 $56,000 Long-term debt 18,100 45,000 Total stockholders’ equity 17,200 69,000 Total liabilities and stockholders’ equity $46,300 $170,000 Beginning-of-Year Balances Total assets $43,000 $164,000 Total stockholders’ equity 14,300 66,000 Current liabilities 10,800 57,000 Total liabilities 28,700 98,000 Other Data Average net accounts receivable $7,900 $4,100 Average inventory 6,800 34,000 Net cash provided by operating activities 5,600 26,300 Capital expenditures 1,800 11,500 Dividends 520 4,200 For each company, compute the following ratios. (Round current ratio answers to 2 decimal places, e.g. 15.50, debt to assets ratio and free cash flow answers to 0 decimal places, e.g. 5,275 and all answers to 1 decimal place, e.g. 1.8 or 1.83%.) 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

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 $66,400 $407,000 Cost of goods sold 46,000 306,000 Selling and administrative expenses 15,500 79,000 Interest expense 670 1,800 Other income (expense) (85 ) (390 ) Income tax expense 1,300 7,500 Net income $ 2,845 $ 12,310 Balance Sheet Data (End of Year) Current assets $19,000 $47,000 Noncurrent assets 27,300 123,000 Total assets $46,300 $170,000 Current liabilities $11,000 $56,000 Long-term debt 18,100 45,000 Total stockholders’ equity 17,200 69,000 Total liabilities and stockholders’ equity $46,300 $170,000 Beginning-of-Year Balances Total assets $43,000 $164,000 Total stockholders’ equity 14,300 66,000 Current liabilities 10,800 57,000 Total liabilities 28,700 98,000 Other Data Average net accounts receivable $7,900 $4,100 Average inventory 6,800 34,000 Net cash provided by operating activities 5,600 26,300 Capital expenditures 1,800 11,500 Dividends 520 4,200 For each company, compute the following ratios. (Round current ratio answers to 2 decimal places, e.g. 15.50, debt to assets ratio and free cash flow answers to 0 decimal places, e.g. 5,275 and all answers to 1 decimal place, e.g. 1.8 or 1.83%.) 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

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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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		$66,400		$407,000
Cost of goods sold		46,000		306,000
Selling and administrative expenses		15,500		79,000
Interest expense		670		1,800
Other income (expense)		(85	)	(390	)
Income tax expense		1,300		7,500
Net income		$ 2,845		$ 12,310

	Balance Sheet Data (End of Year)
Current assets		$19,000		$47,000
Noncurrent assets		27,300		123,000
Total assets		$46,300		$170,000
Current liabilities		$11,000		$56,000
Long-term debt		18,100		45,000
Total stockholders’ equity		17,200		69,000
Total liabilities and stockholders’ equity		$46,300		$170,000

	Beginning-of-Year Balances
Total assets		$43,000		$164,000
Total stockholders’ equity		14,300		66,000
Current liabilities		10,800		57,000
Total liabilities		28,700		98,000

	Other Data
Average net accounts receivable		$7,900		$4,100
Average inventory		6,800		34,000
Net cash provided by operating activities		5,600		26,300
Capital expenditures		1,800		11,500
Dividends		520		4,200

For each company, compute the following ratios. (Round current ratio answers to 2 decimal places, e.g. 15.50, debt to assets ratio and free cash flow answers to 0 decimal places, e.g. 5,275 and all answers to 1 decimal place, e.g. 1.8 or 1.83%.)

	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	$enter a dollar amount			$enter a dollar amount

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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