Question

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	 41,895	 286,515
Selling and administrativeexpenses	 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
	BalanceSheet 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 andstockholders' equity	$44,560	$163,514

	Target Corporation	Wal-Mart Stores, Inc.
	Beginning-of-YearBalances
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 accountsreceivable	$ 7,124	$  3,247
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.