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