Question

Assignment > Open Assignment Your answer is partially correct. Try again Selected financial data of Target Corporation and Wal-Mart Stores, Inc. for a recent year are nted here (in milions) Stores, Inc. $374,526 286,515 70,847 Cost of goods sold Interest expense Other income (expense) Income tax expense 41,895 16,200 647 1,896 1,776 $ 2,849 4,273 6,908 s 12,731 $18,906 25,654 $44,560 $11,782 s47,585 115,929 $163,514 58,454 40,452 64,608 assets Total assets Long-term debt 15,307

can some one tell me the right answers of red box I did it but it's showing me wrong can someone help me with this? their is a formula I add a picture of it

Answer 1

hi, please find below answer.. its seems your answer was correct u had transpose error instead of walmart u have put number for Target and vice versa...

Please see below solution let me know if you need any clarification - please do provide rating.

A)	Asset turnover ratio =		Net sales/Average total asset
			Target		Walmart
	i	Net sales	61471		374526
	ii	Closing asset	44560		163514
	iii	Beginning asset	37349		151587
	iv=(ii+iii)/2	Average asset	40954.5		157550.5
	v=	Asset turnover ratio =	1.50		2.38
B)	Return on asset =		Net income/Average total asset
			Target		Walmart
		Net income	2849		12731
		Average asset	40954.5		157550.5
		Return on asset =	6.96%		8.08%
C)	return on common shareholder's equity		Net income-preferred dividend/average common equity
			Target		Walmart
	i	Net income	2849		12731
	ii	Preferred dividend	0		0
	iii=i-ii	Net income-preferred dividend	2849		12731
	iv	Closing equity	15307		64608
	v	Beginning equity	15633		61573
	vi=(iv+v)/2	Average common equity	15470		63090.5
	vii=iii/vi	return on common shareholder's equity	18.42%		20.18%
D)	Debt to asset		Total liability/total asset .
			Target		Walmart
	i=Current + long term debt	Total liability	29253		98906
	ii	Total asset	44560		163514
	iii=i/ii	Debt to asset	65.65%		60.49%