Wal-Mart Stores, Inc. and Target Corporation reported the following in their financial reports: ($ billions) Fiscal...
Wal-Mart Stores, Inc. and Target Corporation reported the following in their financial reports:
| ($ billions) | |||||||
| Fiscal Year | Wal-Mart | Target | |||||
| Sales | COGS | Inventory | Sales | COGS | Inventory | ||
| 2014 | $476 | $358 | $44.9 | $72.6 | $51.3 | $8.79 | |
| 2013 | 469 | 352 | 43.8 | 71.3 | 50.0 | 8.28 | |
| 2012 | 447 | 335 | 40.7 | 72.0 | 50.6 | 7.90 | |
a. Compute the 2014 and 2013 inventory turnovers for each of these two retailers.
b. Discuss any changes that are evident in inventory turnover across years and companies from part a.
c. Describe ways in which a retailer can improve its inventory turnover. Are there ways to increase inventory turnover that are not beneficial to the company's long-term interests?
Homework Answers
| WalMart | Target corporation | ||||
| Year | 2014 | 2013 | 2014 | 2013 | |
| Inventory turnover ratio | COGS/Intentory turnover | 8.07 | 8.33 | 6.01 | 6.18 |
| COGS | 358 | 352 | 51.3 | 50 | |
| average total equity | 44.35 | 42.25 | 8.535 | 8.09 | |
| beginning total equity | 43.8 | 40.7 | 8.28 | 7.9 | |
| ending total equity | 44.9 | 43.8 | 8.79 | 8.28 | |
| subtotal | 88.7 | 84.5 | 17.07 | 16.18 | |
| divide by | 2 | 2 | 2 | 2 | |
| average total equity | net income/average total equity | 44.35 | 42.25 | 8.535 | 8.09 |
| 2- | Inventory turnover ratio for both the companies over the year has reduced | ||||
| 3- | companies can increase the inventory turnover ratio by reducing the investment in inventories but this reduction in inventory may lead to shortage of inventory at time which may lead to sales loss |
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Wal-Mart Stores, Inc. and Target Corporation reported the
following in their financial reports:
($ billions)
Fiscal...
Selected financial data of Target Corporation and Wal-Mart Stores, Inc. for a recent year are presented...
Selected financial data of Target Corporation and Wal-Mart Stores, Inc. for a recent year are presented here (in millions). Target Corporation Wal-Mart Stores, Inc. Income Statement Data for Year Net sales $61,471 $374,526 Cost of goods sold 41,895 286,515 Selling and administrative expenses 16,200 70,847 Interest expense 647 1,798 Other income (expense) 1,896 4,273 Income tax expense 1,776 6,908 Net income $ 2,849 $ 12,731 Balance Sheet Data (End of Year) Current assets $18,906 $ 47,585 Noncurrent assets 25,654 115,929...
Is due by tonight at midnight please help. Target Corporation Wal-Mart Stores, Inc. Income Statement Data...
Is due by tonight at midnight please help.
Target Corporation Wal-Mart Stores, Inc. Income Statement Data for Year Net sales $67,000 $410,000 Cost of goods sold 302,000 Selling and administrative expenses 44,000 14,300 700 81,000 Interest expense 2,000 Other income (expense) (85) (390) Income tax expense 1,400 7,000 Net income $6,515 $ 17,610 Balance Sheet Data (End of Year) Current assets $17,000 $49,000 Noncurrent assets 27,500 122,000 Total assets $44,500 $171,000 Current liabilities $10,000 $55,000 44,000 Long-term debt 18,200 Total...
Solutions in green are correct, the red ones are incorrect. Target Corporation Wal-Mart Stores, Inc. Income...
Solutions in green are correct, the red
ones are incorrect.
Target Corporation Wal-Mart Stores, Inc. Income Statement Data for Year $66,400 $407,000 Net sales Cost of goods sold 306,000 46,000 Selling and administrative expenses 15,500 79,000 Interest expense 1,800 670 Other income (expense) (85) (390) Income tax expense 7,500 1,300 $2,845 12,310 Net income Balance Sheet Data (End of Year) $19,000 $47,000 Current assets Noncurrent assets 27,300 123,000 $46,300 $170,000 Total assets Current liabilities $11,000 $56,000 Long-term debt 18,100 45,000...
Wal-Mart Stores, Inc. Target Corporation Income Statement Data for Year Net sales Cost of goods s...
Wal-Mart Stores, Inc. Target Corporation Income Statement Data for Year Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income (expense) Income tax expense Net income $65,300 45,000 14,000 660 $417,000 301,000 79,000 1,800 (85) (380) 1,500 4,055 7,100 $27,720 Balance Sheet Data (End of Year) Current assets Noncurrent assets Total assets Current liabilities Long-term debt Total stockholders' equity Total liabilities and stockholders $16,000 27.400 $43,400 $11,000 17,800 14,600 $50,000 121,000 $171,000 $54,000 43,000 74,000 $171,000...
Target Corporation Income Statement Wal-Mart Stores,Inc. Date of year Net sales 61,471 374,526 Cost of goods...
Target Corporation Income Statement Wal-Mart Stores,Inc. Date of year Net sales 61,471 374,526 Cost of goods sold 41,895 286,515 Selling and administration expenses 16,200 70,847 Interest expense 647 1,798 Other income (expense) 1,896 4,273 Income tax expense 1,776 6,908 Net Income 2,849 12,731 Balance sheet data (end of year) Current assets 18,906 47,585 noncurrent assets 25,654 115,929 total assets 44,560 163,514 current liabilities 11,782 58,454 long-term debt 17,471 40,452 total stockholder's equity 15,307 64,608 total liabilites and stockholders equity 44,560...
Is due by tonight at midnight please help.
Target Corporation Wal-Mart Stores, Inc. Income Statement Data for Year Net sales $67,000 $410,000 Cost of goods sold 302,000 Selling and administrative expenses 44,000 14,300 700 81,000 Interest expense 2,000 Other income (expense) (85) (390) Income tax expense 1,400 7,000 Net income $6,515 $ 17,610 Balance Sheet Data (End of Year) Current assets $17,000 $49,000 Noncurrent assets 27,500 122,000 Total assets $44,500 $171,000 Current liabilities $10,000 $55,000 44,000 Long-term debt 18,200 Total...
Solutions in green are correct, the red
ones are incorrect.
Target Corporation Wal-Mart Stores, Inc. Income Statement Data for Year $66,400 $407,000 Net sales Cost of goods sold 306,000 46,000 Selling and administrative expenses 15,500 79,000 Interest expense 1,800 670 Other income (expense) (85) (390) Income tax expense 7,500 1,300 $2,845 12,310 Net income Balance Sheet Data (End of Year) $19,000 $47,000 Current assets Noncurrent assets 27,300 123,000 $46,300 $170,000 Total assets Current liabilities $11,000 $56,000 Long-term debt 18,100 45,000...
Wal-Mart Stores, Inc. Target Corporation Income Statement Data for Year Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income (expense) Income tax expense Net income $65,300 45,000 14,000 660 $417,000 301,000 79,000 1,800 (85) (380) 1,500 4,055 7,100 $27,720 Balance Sheet Data (End of Year) Current assets Noncurrent assets Total assets Current liabilities Long-term debt Total stockholders' equity Total liabilities and stockholders $16,000 27.400 $43,400 $11,000 17,800 14,600 $50,000 121,000 $171,000 $54,000 43,000 74,000 $171,000...
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