P18-5Selected financial data of Target and Wal-Mart for a recent year are presented hereity, (in millions).TargetCorporationIncome Statement Data for Year$61,471Wal-MartStores, Inc.Net sales$374,526Cost of goods soldSelling and administrative expensesInterest expense41,895286,51516,20070,8471,7986471,896Other income (expense)Income tax expense4,2731,7766,908$ 2,849$ 12,731Net incomeBalance Sheet Data (End of Year)Current assets$ 47,585$18,90625,654Noncurrent assets115,929Total assets$44,560$163,514Current liabilities$11,782$ 58,454Long-term debtTotal stockholders' equity17,47140,45264,60815,307Total liabilities and stockholders' equity$44,560$163,514Beginning-of-Year Balances$151,58761,573Total assets$37,349Total stockholders' equity15,633Current liabilities11,11752,148Total liabilities21,71690,014Other Data$ 7,1246,5174,125$ 3,247Average net receivablesAverage inventoryNet cash provided by operating activities34,43320,354Instructions(a) For each company, compute the following ratios.(1) Current.(2) Receivables turnover.(3) Average collection period.(4) Inventory turnover.(5) Days in inventory.(6) Profit margin.(b) Compare the liquidity, profitability, and solvency of the two companies.(7) Asset turnover.(8) Return on assets.(9) Return on common stockholders' equity.(10) Debt to total assets.(11) Times interest earned.

Accounting Ratios are the financial tools used to interpret the financial statements of…

P18-5 Selected financial data of Target and Wal-Mart for a recent year are presented here (in millions). Target Corporation Income Statement Data for Year $61,471 Wal-Mart Stores, Inc Net sales $374,526 Cost of goods sold Selling and administrative expenses Interest expense Other income (expense) Income tax expense 41,895 16,200 647 286,515 70,847 1,798 4,273 6,908 1,896 1,776 $ 2,849 Balance Sheet Data (End of Year) $18,906 25,654 $44,560 Net income 12,731 Current assets Noncurrent assets $ 47,585 115,929 Total assets $163,514 $ 58,454 40,452 64,608 Current liabilities $11,782 Long-term debt Total stockholders' equity 17,471 15,307

P18-5 Selected financial data of Target and Wal-Mart for a recent year are presented here (in millions). Target Corporation Income Statement Data for Year $61,471 Wal-Mart Stores, Inc Net sales $374,526 Cost of goods sold Selling and administrative expenses Interest expense Other income (expense) Income tax expense 41,895 16,200 647 286,515 70,847 1,798 4,273 6,908 1,896 1,776 $ 2,849 Balance Sheet Data (End of Year) $18,906 25,654 $44,560 Net income 12,731 Current assets Noncurrent assets $ 47,585 115,929 Total assets $163,514 $ 58,454 40,452 64,608 Current liabilities $11,782 Long-term debt Total stockholders' equity 17,471 15,307

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.4.19P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...

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