Question

Question 2 of 2 < Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income Income taxes Net income Target Wal-Mart (1/31/22) (1/31/22) Income Statement Data for Year $60,000 $404,000 39,000 282,800 14,400 68,680 600 2,020 20 4,000 2,107 19,075 $3.913 $ 35,425 Current assets Noncurrent assets Total assets Current liabilities Long-term liabilities Total stockholders' equity Total liabilities and stockholders' equity Target Wal-Mart Balance Sheet Data (End of Year) $13,500 $36,400 24,000 110,000 $37.500 $146,400 $9,000 $ 52,000 16,500 28,520 12.000 65,880 $37,500 $146,400

Answer 1

				Target	Walmart
a	Working Capital
	Current Assets			13,500	36,400
	Less : Current Liabilities			9,000	52,000
				4,500	(15,600)
b	Current Ratio			1.50	0.70
	( Current Assets / Current Liabilities )
c	Debt to Assets			44.0%	19.5%
	( Total Debt / Total Assets )
	Total Assets			37,500	146,400
	Long Term Liabilities			16,500	28,520
	Total Debt			16,500	28,520
d	Free Cash Flow
	Net Cash Provided by operating activities	4,400	23,000
	Less : Cash Paid for capital expenditures	3,200	11,300
				1,200	11,700
e	Earnings Per Share			4.55	5.45
	( Earnings after Taxes / No. of Shares )
	Net Income			3913	35425
	Weighted Average common shares outstanding	860	6500
f	Which Company has better Liquidity			Target
	Which Company has better Solvency			Target