Selected financial data of Target and Wal-Mart for 2005 are presented here (in millions) Target Wal-Mart Corporation
Question:
Selected financial data of Target and Wal-Mart for 2005 are presented here (in millions)
Target | Wal-Mart | |
Corporation | Stores, Inc | |
Income Statement Data for Year | ||
Net Sales | $ 45,682 | $ 285,222 |
Cost of goods sold | $ 31,445 | $ 219,793 |
Selling and administrative expense | $ 10,480 | $ 51,354 |
Interest expense | $ 570 | $ 986 |
Other income (expense) | $ 1,157 | $ 2,767 |
Income tax expense | $ 1,146 | $ 5,589 |
Net income | $ 3,198 | $ 10,267 |
Balance Sheet Data (End of Year) | ||
Current assets | $ 13,922 | $ 38,491 |
Noncurrent asset | $ 18,371 | $ 81,732 |
Total assets | $ 32,293 | $ 120,223 |
Current liabilities | $ 8,220 | $ 42,888 |
Long-term debt | $ 11,044 | $ 27,939 |
Total stockholders’ equity | $ 13,029 | $ 49,396 |
Total liabilities and stockholders’ equity | $ 32,293 | $ 120,223 |
Beginning-of-Year Balances | ||
Total assets | $ 31,416 | $ 105,405 |
Total stockholders’ equity | $ 11,132 | $ 43,623 |
Current liabilities | $ 8,314 | $ 40,364 |
Total liabilities | $ 20,284 | $ 61,782 |
Other Data | ||
Average net receivables | $ 4,845 | $ 1,485 |
Average inventory | $ 4,958 | $ 28,030 |
Net cash provided by operating activities | $ 3,821 | $ 15,044 |
Instructions:
1. For each company, compute the following ratios:
a. Current.
b. Receivables turnover.
c. Average collection period.
d. Inventory turnover.
e. Days in inventory.
f. Profit margin.
g. Asset turnover
h. Return on assets.
i. Return on common stockholders’ equity
j. Debt to total assets.
k. Times interest earned.
2. Compare the liquidity, solvency and profitability of the two companies.
SolvencySolvency means the ability of a business to fulfill its non-current financial liabilities. Often you have heard that the company X went insolvent, this means that the company X is no longer able to settle its noncurrent financial...
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Related Book For
Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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