Question

"Problem 9-5 Suppose selected financial data of Target and Wal-Mart for 2017 are presented here (in millions). w art Target Carporation Current 555.561 Total and consequity 5170706 Beginning-of-Year 5163429 544,106 13,712 Total assets Total c oders' equity Current is Total abilities Other Data $7,525 Average counts receivable Average inventory Net cash provided by wing activities Capital expenditures Dividends 1214 (a) For each company, compute the following ratios. (Round current ratio to 2 decimal places, e.g 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 2.5%. Use 365 days in calculation.) (2) Accounts recebe umover

Answer 1

Amount $ Millions
Income Statement	Target	Walmart		Ans 1	Target	Walmart
Sales	65,357.00	408,214.00		Current Ratio	1.63	0.87
Total Sales	65,357.00	408,214.00		Current Assets/Current Liabilities
Expenses
Cost of goods sold	45,583.00	304,657.00		Ans 2
Gross Margin	19,774.00	103,557.00		Accounts Receivable Turnover	8.69	101.42
Selling and administrative expense	15,101.00	79,607.00		Sales/Average Accounts Receivable
Other Expense	94.00	411.00
Earning before Interest & Taxes	4,579.00	23,539.00		Ans 3
Interest Expense	707.00	2,065.00		Average collection period	42.02	3.60
Net Income before taxes	3,872.00	21,474.00		365/Accounts Receivable Turnover
Income tax	1,384.00	7,139.00
Net Income	2,488.00	14,335.00		Ans 4
				Inventory Turnover	6.57	9.00
Balance Sheet	Target		Cost of goods sold/ Average Inventory
Assets	End Year	Beginning
Current Assets	18,424.00	-		Ans 5
Non Current Assets	26,109.00	-		Days in Inventory	55.59	40.54
Total Assets	44,533.00	44,106.00		365/Inventory Turnover
Average Assets	44,319.50
				Ans 6
Current Liabilities	11,327.00	10,512.00		Profit margin ratio	3.81%	3.51%
Long Term Debt	17,859.00	-		Net Income/Net Sales
Total Liabilities	29,186.00	30,394.00
Total Stockholders' Equity	15,347.00	13,712.00		Ans 7
Total Liabilities & Stockholders' Equity	44,533.00	44,106.00		Asset Turnover	1.47	2.44
				Net Sales/ Average Assets
Balance Sheet	Walmart
Assets	End Year	Beginning		Ans 8
Current Assets	48,331.00	-		Return on Assets	5.59%	8.40%
Non Current Assets	122,375.00	-		Net Income / Total Assets
Total Assets	170,706.00	163,429.00
Average Assets	167,067.50			Ans 9
				Return on Equity	16.21%	20.17%
Current Liabilities	55,561.00	55,390.00		Net Income/Total Stock Holders Equity
Long Term Debt	44,089.00	-
Total Liabilities	99,650.00	97,747.00		Ans 10
Total Stockholders' Equity	71,056.00	65,682.00		Debt to Assets Ratio	0.66	0.58
Total Liabilities & Stockholders' Equity	170,706.00	163,429.00		Total Liabilities /Total Assets
Other Data	Target	Walmart		Ans 11
Average net accounts receivable	7,525.00	4,025.00		Times Interest Earned	6.48	11.40
Average Inventory	6,942.00	33,836.00		Earning before Interest & Taxes/Interest Expense
Net cash provided by operating activities	5,881.00	26,249.00
Capital expenditures	1,729.00	12,184.00		Ans 12
Dividends	496.00	4,217.00		Free Cash Flow	4,152.00	14,065.00
				Net cash provided by operating activities- Capital expenditures