For the following chart, the left column is Walmart and the right column is CVS. Both have been in business for 10 years with steady growth but each business has a different viewpoint in many respects. Walmart is more conservative, and as its president has said, ?We avoid what we consider to be undue risk.? Neither company is publicly held. Create a schedule that shows ratio analysis for Walmart and CVS (show work if needed).

			WALMART	CVS
	Profitability Ratio
1.		Return on equity	%	%
2		Return on assets	%	%
3		Gross profit percentage	%	%
4		Net profit margin	%	%
5		Earnings per share
6		Quality of income
	Asset Turnover Ratio
7		Total asset turnover
8		Fixed asset turnover
9		Receivable turnover
10		Inventory turnover
	Liquidity Ratio
11		Current ratio
12		Quick ratio
13		Cash ratio
	Solvency Ratio
14		Times interest earned ratio
15		Cash coverage ratio
16		Debt/equity ratio
	Market Ratio
17		Price/earnings ratio
18		Dividend yield ratio	%	%

Transcribed Image Text:

Balance sheet: Cash Accounts receivable (net) Inventory Property & equipment (net) Other assets Total assets Current liabilities Long-term debt (interest rate: 108) Capital stock ($10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity Income statement: Sales revenue (1/3 on credit) Cost of goods sold Operating expenses Net income Other data: Per share stock price at end of current year Average income tax rate Dividends declared and paid in current year $ 41,000 38,000 99,000 140,000 84,000 $ 402,000 $ 99,000 65,000 148,000 29,000 61,000 $ 402,000 $ 447,000 (241,000) (161,000) 45,000 $ $ $ 22 30% 33,000 $ 21,000 31,000 40,000 401,000 305,000 $ 798,000 $ 49,000 60,000 512,000 106,000 71,000 $ 798,000 $ 802,000 (400,000) (311,000) 91,000 $ $ 15 30% $ 148,000 Balance sheet: Cash Accounts receivable (net) Inventory Property & equipment (net) Other assets Total assets Current liabilities Long-term debt (interest rate: 108) Capital stock ($10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity Income statement: Sales revenue (1/3 on credit) Cost of goods sold Operating expenses Net income Other data: Per share stock price at end of current year Average income tax rate Dividends declared and paid in current year $ 41,000 38,000 99,000 140,000 84,000 $ 402,000 $ 99,000 65,000 148,000 29,000 61,000 $ 402,000 $ 447,000 (241,000) (161,000) 45,000 $ $ $ 22 30% 33,000 $ 21,000 31,000 40,000 401,000 305,000 $ 798,000 $ 49,000 60,000 512,000 106,000 71,000 $ 798,000 $ 802,000 (400,000) (311,000) 91,000 $ $ 15 30% $ 148,000

Answer rating: 100% (QA)

Profitability Ratio Formula Walmart CVS Calculation Figures in Ratio Calculation Ratio Return on equity Net IncomeAverage Shareholders equity 45000148... View the full answer