$1.$ Which firm has most liquid?

$2.$What is the return to shareholders

$3.$ What is the NPV of buying sears?

$4.$ What is the PV of Mr$.$ Lacy's p Income Statements $-$ January $31,2004$

$($All numbers in thousands$)$

$\backslash$table$[[,$Wal$-$Mart,Kmart,Sears,Target$],[$Sales$,258,681,000,23,253,000,41,124,000,48,163,000],[$Cost of Sales,$198,747,000,17,846,000,26,231,000,31,790,000],[$Gross Profit,$59,934,000,5,407,000,14,893,000,16,373,000],[$Administrative Expenses,$44,909,000,4,998,000,9,111,000,11,534,000],[$EBIT$,15,025,000,409,000,5,782,000,4,839,000],[$Interest$,996,000,162,000,1,025,000,559,000],[$Taxes $($@$35\%),4,910,150,86,450,1,664,950,1,498,000],[$Net Income,$9,118,850,160,550,3,092,050,2,782,000]]$

Balance Sheets as at January $31,2004$

$($All numbers in thousands$)$

$\backslash$table$[[,$Wal$-$Mart,Kmart,Sears,Target$],[$Cash and cash equivalents,$5,199,000,2,088,000,9,057,000,816,000],[$Receivables$,1,254,000,301,000,3,397,000,5,776,000],[$Inventory$,26,612,000,3,238,000,5,335,000,5,373,000],[$Total Current Assets,$33,065,000,5,627,000,17,789,000,11,965,000],[,,,,],[$Property$,$ Plant & Equip.,$58,530,000,153,000,6,788,000,16,969,000],[$Other Assets,$6,079,000,120,000,908,000,1,495,000],[$Total Assets,$97,674,000,5,900,000,25,485,000,30,429,000],[,,,,],[$Accounts Payable,$31,051,000,1,772,000,7,582,000,7,448,000],[$Other current Liabilities,$6,367,000,1,050,000,5,194,000,866,000],[$Total current liabilities,$37,418,000,2,822,000,12,776,000,8,314,000],[,,,,],[$Long term Debt,$20,099,000,2,297,000,4,718,000,10,217,000],[$Common stock,$431,000,208,000,823,000,96,000],[$Retained Earnings,$39,726,000,573,000,7,168,000,11,802,000],[$Total Liabilities & Equity,$97,674,000,5,900,000,25,485,000,30,429,000],[,,,,]]$

Questions you should consider in reviewing the case:

Which firm is most liquid?

What is the return to shareholders?

What is the NPV of buying Sears?

What is the PV of Mr$.$ Lacy's pay package?

How could we find the greatest underperforming area for any of the firms?ay package $?$

$5.$ How could we find the greatest underperforming area for any of the firms?