Question

Selected hypothetical financial data of Target and Walmart for 2022 are presented here (in millions).

		Target Corporation				Walmart Inc.
		Income Statement Data for Year
Net sales			$66,750			$414,180
Cost of goods sold			44,800			302,400
Selling and administrative expenses			15,500			81,000
Interest expense			650			1,900
Other income (expense)			(80	)		(400	)
Income tax expense			1,400			7,300
Net income			$ 4,320			$ 21,180
		Balance Sheet Data (End of Year)
Current assets			$17,050			$47,040
Noncurrent assets			26,700			120,000
Total assets			$43,750			$167,040
Current liabilities			$11,000			$56,000
Long-term debt			16,800			45,000
Total stockholders’ equity			15,950			66,040
Total liabilities and stockholders’ equity			$43,750			$167,040
		Beginning-of-Year Balances
Total assets			$45,000			$164,000
Total stockholders’ equity			13,300			64,000
Current liabilities			10,500			58,000
Total liabilities			31,700			100,000
		Other Data
Average net accounts receivable			$7,500			$3,900
Average inventory			7,000			33,600
Net cash provided by operating activities			5,500			27,400
Capital expenditures			1,800			11,800
Dividends			500			4,500

(a) For each company, compute the following ratios. (Round current ratio to 2 decimal places, e.g 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 2.5%. Use 365 days in calculation.)

		Ratio		Target			Walmart
(1)		Current ratio		enter Current ratio rounded to 2 decimal places	:1		enter Current ratio rounded to 2 decimal places	:1
(2)		Accounts receivable turnover		enter a number of Accounts receivable turnover in times rounded to 1 decimal place	times		enter a number of Accounts receivable turnover in times rounded to 1 decimal place	times
(3)		Average collection period		enter a number of Average collection period in days rounded to 1 decimal place	days		enter a number of Average collection period in days rounded to 1 decimal place	days
(4)		Inventory turnover		enter a number of Inventory turnover in times rounded to 1 decimal place	times		enter a number of Inventory turnover in times rounded to 1 decimal place	times
(5)		Days in inventory		enter a number of days in inventory rounded to 1 decimal place	days		enter a number of days in inventory rounded to 1 decimal place	days
(6)		Profit margin		enter Profit margin in percentages rounded to 1 decimal place	%		enter Profit margin in percentages rounded to 1 decimal place	%
(7)		Asset turnover		enter a number of Asset turnover in times rounded to 1 decimal place	times		enter a number of Asset turnover in times rounded to 1 decimal place	times
(8)		Return on assets		enter Return on assets in percentages rounded to 1 decimal place	%		enter Return on assets in percentages rounded to 1 decimal place	%
(9)		Return on common stockholders’ equity		enter Return on common stockholders’ equity in percentages rounded to 1 decimal place	%		enter Return on common stockholders’ equity in percentages rounded to 1 decimal place	%
(10)		Debt to assets ratio		enter Debt to assets ratio in percentages rounded to 1 decimal place	%		enter Debt to assets ratio in percentages rounded to 1 decimal place	%
(11)		Times interest earned		enter a number of times interest earned rounded to 1 decimal place	times		enter a number of times interest earned rounded to 1 decimal place	times
(12)		Free cash flow		$enter Free cash flow in dollars			$enter Free cash flow in dollars

Answer 1

S NO.	Particulars	Target Corporation	Walmart INC
	Current Assets (a)	$                                                                                                                                            17,050.00	$     47,040.00
	Current Liabilities (b)	$                                                                                                                                            11,000.00	$     56,000.00
1	Current ratio (a/b)	1.55	0.84
	Net sales (a)	$                                                                                                                                            66,750.00	$ 4,14,180.00
	Avg net Account receivable (b)	$                                                                                                                                              7,500.00	$       3,900.00
2	Account Receivable Turnover ratio (a/b)	8.9	106.2
3	Average Collection Period	41.0	3.4
	Cost of goods sold	$                                                                                                                                            44,800.00	$ 3,02,400.00
	Average Inventory	$                                                                                                                                              7,000.00	$     33,600.00
4	Inventory Turnover Ratio	6.4	9