Learner Interaction and Engagement Assignment (2.1) Objective: This activity has the purpose of helping students identify and compute ratios for analyzing a company's profitability, liquidity and solvency Student Instructions: 1. Selected financial data of two competitors, Target and Wal-Mart, are presented here. (All dollars are in millions.) Suppose the data were taken from the 2014 financial statements of each company. For each company, compute these values and ratios. (a) Working capital (b) Current ratio. (c) Debt to assets ratio. (d) Free cash flow. (e) Eamnings per share. (1) Compare the liquidity and solvency of the two companies 2. You only have one opportunity to submit the homework through email. 3. Value points: (26 pts.) 4. Due date is on Saturday at 11:59 PM by the end of this week. Target Wal-Mart (1/31/14) (1/31/14) Income Statement Data for Year Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income Income taxes Net income $64,948 44,157 16,389 894 $401,244 306,158 76,651 2,103 4,213 7,145 $ 13,400 28 1,322 $ 2,214 Target Wal-Mart Balance Sheet Data (End of Year) Current assets Noncurrent assets Total assets Current liabilities Long-term liabilities Total stockholders' equity Total liabilities and stockholders' equity Net cash provided by operating activities Cash paid for capital expenditures Dividends declared and paid on common stock Average shares outstanding (millions) $17,488 26.618 $44,106 $10,512 19.882 13.712 $44,106 $4,430 53 547 $465 774 $ 48,949 114,480 $163.429 S 55.390 42.754 65.285 $163,429 $23,147 $11.499 $3.746 3.951