Question

Question 2 View Policies Current Attempt in Progress Walmart Stores Inc. and Target Corp. reported the following information in 2015 (excluding Target's discontinued operations): Total assets, 2015 Total assets, 2014 Revenue, 2015 Net income, 2015 Walmart Target (in U.S. $ millions) (in U.S. $ millions) $204,751 $78,315 203,490 79,651 485,651 72,618 16,363 2,449 Industry averages were as follows: profit margin, 2.7%; asset turnover, 3.7 times; and return on assets, 10.0%. (a) For each company, calculate the (1) profit margin, (2) asset turnover, and (3) return on assets ratios for 2015. (Round answers to 1 decimal place, e.g. 5.2% or 5.2.) Walmart Target (1) Profit margin (2) Asset turnover times times (3) Return on assets e Textbook and Media Attempts: 0 of 10 used Save for Later Submit Answer

Answer 1

1) Profit margin = Not Income Profil Sales/ Revenue Walmart Torget 16363 100 2449 x 100 485651 +2618 2 3,372 3.369 3.4% = 2) Asset Turnover - Net Sales/ Revenue Aug. Total Assets Target Walmart 72618 485651 204751+20 3490 78315 +7965) 72618 78983 485651 204120.5 2.379 2.4 times 0.919 I time

Net 3) Rehorn on Assets Income Aug. Total assets to Target Walmart 16363 204751+ 203490 2449 78315+79651 16363 2041 20.5 8.016 = 8.7. 2449 78983 - 3.1006 - 3.1).