QUESTION 8P18-5AP14.5A (LO 3)are presented here (in millions).Compute selected ratios, and compare liquidity, profitability, and solvency for twoсотрanies.Suppose selected financial data of Target and Wal-Mart for 2020Wal-MartTargetCorporation Stores, Inc.Income Statement Data for YearNet sales$65,357$408,214Cost of goods sold45,583304,657Selling and administrative expenses15,10179,607LWal-MartTargetCorporation Stores, Inc.Interest expense7072,065Other income (expense)(94)(411)Income tax eхрense1,3847,139$ 2,488Balance Sheet Data (End of Year)Net income$ 14,335Current assets$18,424$ 48,331Noncurrent assets26,109122,375Total assets$44,533$170,706Current liabilities$11,327$ 55,561Long-term debtTotal stockholders' equity17,85944,08915,34771,056Total liabilities and stockholders' equity$44,533$170,706Beginning-of-Year BalancesTotal assets$44,106$163,429Total stockholders' equity13,71265,682Current liabilities10,51255,390Total liabilities30,39497,747Other DataAverage net accounts receivable$ 7,525$ 4,025Average inventory6,94233,836Net cash provided by operating activities 5,88126,249Capital expenditures1,72912,184Dividends4964,217Instructionsa. 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.L• 12. Free cash flow.b. Compare the liquidity, solvency, and profitability of the two companies.

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b. Compare the liquidity, solvency, and profitability of the two companies.

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 9.4.5P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...

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