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| Teaching Since: | Apr 2017 |
| Last Sign in: | 419 Weeks Ago |
| Questions Answered: | 3232 |
| Tutorials Posted: | 3232 |
MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
Selected financial data ofTargetandWal-Martfor a recent year are presented here (in millions).
| Â |
Target |
Wal-Mart |
|
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 |
| Â |
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 |
| Â | Â | Â |
Instructions
(a)For each company, compute the following ratios.
(1)Current ratio.
(2)Accounts receivable 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 assets ratio.
(11)Times interest earned.
(b)Compare the liquidity, profitability, and solvency of the two companies.
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