Selected financial data of Target and Wal-Mart for a recent year are presented here (in millions). Instructions
Question:
Selected financial data of Target and Wal-Mart for a recent year are presented here (in millions).
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 twocompanies.
Solvency 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
Accounting Principles
ISBN: 9781118566671
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
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