Select financial data of Target Corporation and Wal-Mart Stores, Inc for a recent year are presented here (in million)
Target Walmart
corporation 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
non current 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 stockholders equality 15,307 64,608
Total liabilities and stockholders equality $44,560 $163,514
Target Walmart
Corporation Stores, Inc
Beginning of year balance
Total assets $37,349 $151,587
Total stockholders equality 15,633 61,573
Current liabilities 11,117 52,148
Total liabilities 21,716 90,014
other data
Average net accounts receivable $7,124 $3,247
Average Inventory 6,517 34,433
Net cash provided by operating activities 4,125 20,354
Instrutions
(a) For each company, compute the following ratios
(1) Current ratio (7) Assets turnover
(2) Accounts receivable turnover (8) Return on assets
(3) Average collection period (9) Return on common stockholders equality
(4) Inventory turnover (10) Debt to assets ratio
(5) Days in inventory (11) Times interest earned
(6) Profit margin
B) Compare the liquidity, profitability, and solvency of the companies
