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28 Sep 2019
Target Wal-Mart
Corporation 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
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 receivables $7,124 $ 3,247
Average inventory 6,517 34,433
Net cash provided by operating activities 4,125 20,354
Instructions
For each company, compute the following ratios. (Round answers to 1decimal place, e.g. 10.5.)
Target Walmart
(1) Current :1 :1
(2) Receivables turnover
(3) Average collection period
(4) Inventory turnover
(5) Days in inventory
(6) Profit margin % %
(7) Asset turnover
(8) Return on assets % %
(9) Return on common stockholders' equity % %
(10) Debt to total assets % %
(11) Times interest earned
Click here if you would like to Show Work for this question
Target Wal-Mart
Corporation 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
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 receivables $7,124 $ 3,247
Average inventory 6,517 34,433
Net cash provided by operating activities 4,125 20,354
Instructions
For each company, compute the following ratios. (Round answers to 1decimal place, e.g. 10.5.)
Target Walmart
(1) Current :1 :1
(2) Receivables turnover
(3) Average collection period
(4) Inventory turnover
(5) Days in inventory
(6) Profit margin % %
(7) Asset turnover
(8) Return on assets % %
(9) Return on common stockholders' equity % %
(10) Debt to total assets % %
(11) Times interest earned
Click here if you would like to Show Work for this question
Corporation 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
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 receivables $7,124 $ 3,247
Average inventory 6,517 34,433
Net cash provided by operating activities 4,125 20,354
Instructions
For each company, compute the following ratios. (Round answers to 1decimal place, e.g. 10.5.)
Target Walmart
(1) Current :1 :1
(2) Receivables turnover
(3) Average collection period
(4) Inventory turnover
(5) Days in inventory
(6) Profit margin % %
(7) Asset turnover
(8) Return on assets % %
(9) Return on common stockholders' equity % %
(10) Debt to total assets % %
(11) Times interest earned
Click here if you would like to Show Work for this question
Reid WolffLv2
28 Sep 2019
Related questions
Selectedfinancial data of Target and Wal-Mart for a recent year arepresented here (in millions).
Target Corporation | Wal-Mart Stores, Inc. | |||
Income Statement Data for Year | ||||
| Net sales | $61,471 | $374,526 | ||
| Cost of goodssold | 41,895 | 286,515 | ||
| Selling andadministrative expenses | 16,200 | 70,847 | ||
| Interestexpense | 647 | 1,798 | ||
| Other income(expense) | 1,896 | 4,273 | ||
| Income taxexpense | 1,776 | 6,908 | ||
| Net income | $ 2,849 | $ 12,731 | ||
Balance Sheet Data (End of Year) | ||||
| Currentassets | $18,906 | $47,585 | ||
| Noncurrentassets | 25,654 | 115,929 | ||
| Totalassets | $44,560 | $163,514 | ||
| Currentliabilities | $11,782 | $58,454 | ||
| Long-termdebt | 17,471 | 40,452 | ||
| Totalstockholders%u2019 equity | 15,307 | 64,608 | ||
| Totalliabilities and stockholders%u2019 equity | $44,560 | $163,514 | ||
Beginning-of-Year Balances | ||||
| Totalassets | $37,349 | $151,587 | ||
| Totalstockholders%u2019 equity | 15,633 | 61,573 | ||
| Currentliabilities | 11,117 | 52,148 | ||
| Totalliabilities | 21,716 | 90,014 | ||
Other Data | ||||
| Average netreceivables | $7,124 | $3,247 | ||
| Averageinventory | 6,517 | 34,433 | ||
| Net cashprovided by operating activities | 4,125 | 20,354 | ||
Selected financial data of Target Corporation and Wal-MartStores, Inc. for a recent year are presented here (inmillions).
| Target Corporation | Wal-Mart Stores, Inc. | ||
| Income StatementData for Year | |||
| Net sales | $61,471 | $374,526 | |
| Cost of goods sold | â41,895 | â286,515 | |
| Selling and administrativeexpenses | â16,200 | ââ70,847 | |
| Interest expense | ââââ647 | âââ1,798 | |
| Other income (expense) | ââ1,896 | âââ4,273 | |
| Income tax expense | ââ1,776 | âââ6,908 | |
| Net income | $â2,849 | $â12,731 | |
| BalanceSheet Data (End of Year) | |||
| Current assets | $18,906 | $â47,585 | |
| Noncurrent assets | â25,654 | â115,929 | |
| Total assets | $44,560 | $163,514 | |
| Current liabilities | $11,782 | $â58,454 | |
| Long-term debt | â17,471 | ââ40,452 | |
| Total stockholders'equity | â15,307 | ââ64,608 | |
| Total liabilities andstockholders' equity | $44,560 | $163,514 | |
| Target Corporation | Wal-Mart Stores, Inc. | ||
| Beginning-of-YearBalances | |||
| Total assets | $37,349 | $151,587 | |
| Total stockholders'equity | â15,633 | ââ61,573 | |
| Current liabilities | â11,117 | ââ52,148 | |
| Total liabilities | â21,716 | ââ90,014 | |
| Other Data | |||
| Average net accountsreceivable | $â7,124 | $ââ3,247 | |
| Average inventory | 6,517 | 34,433 | |
| Net cash provided by operatingactivities | 4,125 | 20,354 | |
Instructions
For each company, compute the following ratios.
(1) Current ratio.
(2) Accounts receivable turnover.
(3) Average collection period.
(4) Inventory turnover.
(5) Days in inventory.
(6) Profit margin.
(7) Asset turnover.
(8) Return on assets.
(9) Return on common stockholders' equity.
(10) Debt to assets ratio.
(11) Times interest earned.
Compare the liquidity, profitability, and solvency of the twocompanies.
