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Selected financial data of two competitors, Target and Wal-Mart, are presented here. (All dollars are in millions.) Suppose t14.772 59,926 Total stockholders equity Total liabilities and stockholders equity $49,240 $157,700 Net cash provided by ope

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Answer #1
a) Working Capital = Current Assets - Current Liabilities
Target Wal-Mart
= $18240-12000 = $40700-55000
= $ 6240 = $ -14300
b) Current Ratio = Current Assets / Current Liabilities
Target Wal-Mart
= $18240/12000 = $40700/55000
=1.52 times =0.74 times
c) Debt To Asset Ratio = Total Debt / Total Assets
Target Wal-Mart
= $34468/49240 = $97774/157700
=70% =62%
d) Free Cash Flow
Target Wal-Mart
$                        650 $                    8,200
e) Earning Per Shares = Net Income/ Average Number Of Shares Outstanding
Target Wal-Mart
= $3159/780 = $35815/4940
= $ 4.05 = $ 7.25
f) Better liquidity = Target
Better Solvency = Wal-Mart
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