Selected hypothetical financial data of Target and Wal-Mart for 2022 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. 

12. Free cash flow. 

b. Compare the liquidity, solvency, and profi tability of the two companies.

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Target Wal-Mart Stores, Inc. Corporation Income Statement Data for Year Net sales $65,357 $408,214 Cost of goods sold Selling and administrative expenses Interest expense 45,583 304,657 79,607 15,101 707 2,065 Other income (expense) Income tax expense (94) (411) 1,384 7,139 $ 2,488 Net income $ 14,335 Balance Sheet Data (End of Year) $ 48,331 Current assets $18,424 Noncurrent assets 26,109 122,375 Total assets $44,533 $170,706 Current liabilities $ 55,561 $11,327 Long-term debt Total stockholders' equity 17,859 44,089 71,056 15,347 Total liabilities and stockholders' equity $44,533 $170,706 Beginning-of-Year Balances $44,106 13,712 Total assets $163,429 Total stockholders' equity 65,682 Current liabilities 10,512 55,390 Total liabilities 30,394 97,747 Other Data $ 7,525 Average net accounts receivable Average inventory Net cash provided by operating activities Capital expenditures $ 4,025 6,942 33,836 5,881 26,249 1,729 12,184 Dividends 496 4,217