The following presents comparative information of Target and Walmart: Wal-Mart Current Ratio Quick Ratio Debt Ratio Target Current Ratio Quick Ratio Debt Ratio 3Q 2007 0.844 0.133 61.79% 3Q 2007 1.352 0.571 62.67% 3Q 2008 0.872 0.151 60.95% 3Q 2008 1.500 0.661 71.13% Which of the following is correct? 3Q 2009 0.878 0.165 59.73% 3Q 2009 1.580 0.636 67.44% Walmart was more liquid but less solvent than Target. Walmart was less liquid but more solvent than Target. 3Q 2010 0.871 0.219 63.60% 3Q 2010 1.556 0.584 66.85% 3Q 2011 0.880 0.176 63.40% 3Q 2011 1.299 0.462 68.49%

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question 17
The following presents comparative information of Target and Walmart:
Wal-Mart
Current Ratio
Quick Ratio
Debt Ratio
Target
Current Ratio
Quick Ratio
Debt Ratio
3Q 2007
0.844
0.133
61.79%
3Q 2007
1.352
0.571
62.67%
3Q 2008
0.872
0.151
60.95%
3Q 2008
1.500
0.661
71.13%
Which of the following is correct?
3Q 2009
0.878
0.165
59.73%
3Q 2009
1.580
0.636
67.44%
Walmart was more liquid but less solvent than Target.
Walmart was less liquid but more solvent than Target.
3Q 2010
0.871
0.219
63.60%
3Q 2010
1.556
0.584
66.85%
3Q 2011
0.880
0.176
63.40%
3Q 2011
1.299
0.462
68.49%
Transcribed Image Text:Question 17 The following presents comparative information of Target and Walmart: Wal-Mart Current Ratio Quick Ratio Debt Ratio Target Current Ratio Quick Ratio Debt Ratio 3Q 2007 0.844 0.133 61.79% 3Q 2007 1.352 0.571 62.67% 3Q 2008 0.872 0.151 60.95% 3Q 2008 1.500 0.661 71.13% Which of the following is correct? 3Q 2009 0.878 0.165 59.73% 3Q 2009 1.580 0.636 67.44% Walmart was more liquid but less solvent than Target. Walmart was less liquid but more solvent than Target. 3Q 2010 0.871 0.219 63.60% 3Q 2010 1.556 0.584 66.85% 3Q 2011 0.880 0.176 63.40% 3Q 2011 1.299 0.462 68.49%
Debt Ratio
Target
Current Ratio
Quick Ratio
Debt Ratio
61.79%
3Q 2007
1.352
0.571
62.67%
60.95%
3Q 2008
1.500
0.661
71.13%
Which of the following is correct?
59.73%
3Q 2009
1.580
0.636
67.44%
Walmart was more liquid but less solvent than Target.
Walmart was less liquid but more solvent than Target.
Target was more liquid and solvent than Walmart.
Target was less liquid and solvent than Walmart.
63.60%
3Q 2010
1.556
0.584
66.85%
63.40%
3Q 2011
1.299
0.462
68.49%
Transcribed Image Text:Debt Ratio Target Current Ratio Quick Ratio Debt Ratio 61.79% 3Q 2007 1.352 0.571 62.67% 60.95% 3Q 2008 1.500 0.661 71.13% Which of the following is correct? 59.73% 3Q 2009 1.580 0.636 67.44% Walmart was more liquid but less solvent than Target. Walmart was less liquid but more solvent than Target. Target was more liquid and solvent than Walmart. Target was less liquid and solvent than Walmart. 63.60% 3Q 2010 1.556 0.584 66.85% 63.40% 3Q 2011 1.299 0.462 68.49%
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