Question 7

Current Attempt in Progress Recently, it was announced that two giant French retailers, Carrefour SA and Promodes SA, would merge. A headline in the Wall Street Journal blared, "French Retailers Create New Walmart Rival" While Walmart's total sales would still exceed those of the combined company, Walmart's international sales are far less than those of the combined company. This is a serious concern for Walmart, since its primary opportunity for future growth lies outside of the United States. Below are basic financial data for the combined corporation (in euros) and Walmart (in U.S. dollars). Even though their results are presented in different currencies, by employing ratios we can make some basic comparisons. Carrefour Wal-Mart (in millions) (in millions) 70,486 $256,329 54,630 198,747 1.738 9,054 Sales revenue Cost of goods sold Net income Total assets Current assets Current liabilities Total liabilities 104.912 39,063 14,521 34,421 37,418 13,660 29,434 61,289 Compare the two companies by answering the following. (a1) Net income 1.738 9,054 39,063 104.912 14,521 Total assets Current assets Current liabilities Total liabilities 13,660 34,421 37.418 61.289 29,434 Compare the two companies by answering the following (21) Calculate the gross profit rate for each of the companies. (Round answers to 1 decimal places, e.g. 15.2%. Gross profit rate Carrefour Wal-Mart % eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer ) (61)