P13-5A Selected financial data of Target and Wal-Mart for 2009 are presented here (in millions). Target Wal-Mart Corporation Stores, Inc. Income Statement Data for Year Net sales $65,357 $408,214 Cost of goods sold 45,583 304,657 Selling and administrative expenses 15,101 79,607 Interest expense 707 2,065 Other income (expense) (94) (411) Income tax expense 1,384 7,139 Net income $ 2,488 $ 14,335 Balance Sheet Data (End of Year) Current assets $18,424 $ 48,331 Noncurrent assets 26,109 122,375 Total assets $44,533 $170,706 Current liabilities $11,327 $ 55,561 Long-term debt 17,859 44,089 Total stockholders equity 15,347 71,056 Total liabilities and stockholders equity $44,533 $170,706 Beginning-of-Year Balances Total assets $44,106 $163,429 Total stockholders equity 13,712 65,682 Current liabilities 10,512 55,390 Total liabilities 30,394 97,747 Other Data Average net receivables $7,525 $ 4,025 Average inventory 6,942 33,836 Net cash provided by operating activities 5,881 26,249 Capital expenditures 1,729 12,184 Dividends 496 4,217 Compute selected ratios, and compare liquidity, profitability, and solvency for two companies. (SO 6), E Problems: Set B 735 Instructions
(a) For each company, compute the following ratios. (1) Current. (8) Return on assets. (2) Receivables turnover. (9) Return on common stockholders equity. (3) Average collection period. (10) Debt to total assets. (4) Inventory turnover. (11) Times interest earned. (5) Days in inventory. (12) Current cash debt coverage. (6) Profit margin. (13) Cash debt coverage. (7) Asset turnover. (14) Free cash flow.
(b) Compare the liquidity, solvency, and profitability of the two companies. Problems: Set B All of the Problems in this chapter employ decision tools.
