Problem 185A (P18-5A) Selected financial data of Target and Wal-Mart for a recent year are presented here (in millions).
Target Wal-Mart
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
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 stockholders’ equity 15,307 64,608
Total liabilities and stockholders’ equity $44,560 $163,514
Beginning-of-Year Balances
Total assets $37,349 $151,587
Total stockholders’ equity 15,633 61,573
Current liabilities 11,117 52,148
Total liabilities 21,716 90,014
Other Data
Average net receivables $7,124 $ 3,247
Average inventory 6,517 34,433
Net cash provided by operating activities 4,125 20,354
Instructions
For each company, compute the following ratios. (Round answers to 1 decimal place, e.g. 10.5.)
Target Walmart
(1) Current
(2) Receivables turnover
(3) Average collection period
(4) Inventory turnover
(5) Days in inventory
(6) Profit margin
(7) Asset turnover
(8) Return on assets
(9) Return on common stockholders’ equity
(10) Debt to total assets
(11) Times interest earned
