Here you will find some income statements and balance sheets for Sears Holdings (SHLD) and Taget Corp (TGT). Assume that you are a financial manager at Sear and want to compare your firm’s situation with that of Target. Calculate represenatative ratios for liquidity, asset management efficiency, financial leverage (capital structure), and profitability for both Sears and Target. How would you summarize the financial performance of Sears compared to target (its benchmark firm)?Include Sears and Targets current ratio, acid-test ratio, average collection period, accounts receivable turnover, inventory turnover, debt ratio, timed interest earned, total asset turnover, fixed asset turnover, gross profit margin, operating profit margin, net profit margin, operating return on assets, and return on equity. Sears Holdings(SHLD)Target Corp(TGT)Period Ended31-Jan-0931-Jan-09Total revenue$46,770,000$64,948,000Cost of revenue(34,118,000)(44,157,000)Gross profitOperating expenses$12,652,000$20,791,000(12,050,000)(16,389,000)Operating income or loss$602,000(272,000)$4,402,000Interest expense(894,000)Net income$330,000$3,508,000(Click on the icon in order to copy its contents into a spreadsheet.)Sears Holdings(SHLD)Target Corp(TGT)PERIOD ENDING31-Jan-0931-Jan-09Cash and cash equivalents$864,000$1,297,000Accounts receivable9,446,000866,000Inventories6,705,0008,795,000Other current assets473,000458,000Total current assets$17,488,000$11,416,000Long-term investments163,000Property, plant, and equipment25,756,0008,091,000Other assets699,0005,835,000Total assets$44,106,000$25,342,000LiabilitiesAccounts payable$7,366,000$3,430,000Short-/current long-term debt1,262,000787,000Other current liabilities1,884,0004,295,000Total current liabilities$10,512,000$8,512,000Long-term debt17,490,0002,132,000Other long-term liabilities2,392,0005,318,000Total long-term liabilities$19,882,000$7,450,000Total stockholders' equity13,712,0009,380,000Total liabilities and owners' equity$44,106,000$25,342,000(Click on the iconin order to copy its contents into a spreadsheet.)

The current ratio refers to the type of liquidity ratio which evaluates the efficiency of a company…

hat you are a financial manager at Sear and want to compare your firm’s situation with that of Target. Calculate represenatative ratios for liquidity, asset management efficiency, financial leverage (capital structure), and profitability for both Sears and Target. How would you summarize the financial performance of Sears compared to target (its benchmark firm)? Include Sears and Targets current ratio, acid-test ratio, average collection period, accounts receivable turnover, inventory turnover, debt ratio, timed interest earned, total asset turnover, fixed asset turnover, gross profit marg

hat you are a financial manager at Sear and want to compare your firm’s situation with that of Target. Calculate represenatative ratios for liquidity, asset management efficiency, financial leverage (capital structure), and profitability for both Sears and Target. How would you summarize the financial performance of Sears compared to target (its benchmark firm)? Include Sears and Targets current ratio, acid-test ratio, average collection period, accounts receivable turnover, inventory turnover, debt ratio, timed interest earned, total asset turnover, fixed asset turnover, gross profit marg

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 9.4.13P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...

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