In: Accounting
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 2022 financial statements of each company.
Target (1/31/22) Wal-Mart (1/31/22)
Income Statement Data for Year Net sales $65.000 $421,000 Cost of goods sold 45.500 319.960 Selling and administrative expenses 16.250 88.410 Interest expense 650 4.210 Other income 20 4.300 Income taxes 917 4.452 Net income Ŝ1.703 $8.268
Balance Sheet Data (End of ear) Current assets $19680 $46.980 Noncurrent assets 33.000 122000 Total assets $52,680 $168.980 Current liabilities $12,000 $54000 Long-term liabilities 24,876 47.388 Total stockholders' equity 15,804 67592 Total liabilities and stockholders' equity $52.680 $168,980 Net cash provided by operating activities $4,60 $23,000 Cash paid for capital expenditures $3 400 $11.700 Dividends dedlared and paid on common stock $530 $3500 Weighted-average common shares outstandinglmillions) 650 2650
For each company, compute these values and ratios. All dollars are in millions.) (Round Current ratio and Earnings per share to 2 decimal places, e.g. 15.25 and Debt to assets ratio to 1 decimal place, e.g. 78.9%. If answer is negative enter it with a negative sign preceding the number e.g. - 15,000 or in parentheses e.g. (15,000).)
Target Wal-Mart
(a) Working capital
(b) Current ratio
(c) Debt to assets ratio
(d) Free cash flow
(e) Earnings per share
(f) Which company has better liquidity?
Which company has better solvency?