Question

Selected financial data of two competitors, Target and Wal-Mart, are presented here. (All dollars are in millions.) Suppose the data were taken from the 2022 financial statements of each company. 

Target (1/31/22) Wal-Mart (1/31/22) 

                                Income Statement Data for                                         Year Net sales                          $65.000      $421,000 Cost of goods sold                  45.500       319.960 Selling and administrative expenses 16.250        88.410 Interest expense                      650          4.210 Other income                           20          4.300 Income taxes                          917          4.452 Net income                          Ŝ1.703       $8.268

                                                Balance Sheet Data (End of                                                         ear) Current assets                                   $19680          $46.980 Noncurrent assets                                 33.000         122000 Total assets                                     $52,680        $168.980 Current liabilities                              $12,000        $54000 Long-term liabilities                             24,876          47.388 Total stockholders' equity                        15,804          67592 Total liabilities and stockholders' equity       $52.680        $168,980 Net cash provided by operating activities         $4,60          $23,000 Cash paid for capital expenditures                $3 400         $11.700 Dividends dedlared and paid on common stock        $530           $3500 Weighted-average common shares outstandinglmillions)          650  2650

For each company, compute these values and ratios. All dollars are in millions.) (Round Current ratio and Earnings per share to 2 decimal places, e.g. 15.25 and Debt to assets ratio to 1 decimal place, e.g. 78.9%. If answer is negative enter it with a negative sign preceding the number e.g. - 15,000 or in parentheses e.g. (15,000).) 

Target Wal-Mart 

(a) Working capital 

(b) Current ratio 

(c) Debt to assets ratio 

(d) Free cash flow 

(e) Earnings per share

(f) Which company has better liquidity? 

Which company has better solvency?

Answer 1