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ACC 556 financial accounting for managers Target Corporation Wal-Mart Stores, Inc. Income Statement Data for Year Net sales $65,300 $417,000 Cost of goods sold 45,000 301,000 Selling and...

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ACC 556 financial accounting for managers

Target
Corporation
Wal-Mart
Stores, Inc.
Income Statement Data for Year
Net sales$65,300$417,000
Cost of goods sold45,000301,000
Selling and administrative expenses14,00079,000
Interest expense6601,800
Other income (expense)(85)(380)
Income tax expense1,5007,100
Net income$4,055$27,720
Balance Sheet Data
(End of Year)
Current assets$16,000$50,000
Noncurrent assets27,400121,000
Total assets$43,400$171,000
Current liabilities$11,000$54,000
Long-term debt17,80043,000
Total stockholders’ equity14,60074,000
Total liabilities and stockholders’ equity$43,400$171,000
Beginning-of-Year Balances
Total assets$45,000$162,000
Total stockholders’ equity12,80066,000
Current liabilities10,80054,000
Total liabilities32,20096,000
Other Data
Average net accounts receivable$7,600$3,800
Average inventory7,10033,200
Net cash provided by operating activities5,60027,400
Capital expenditures1,60012,100
Dividends4704,200

For each company, compute the following ratios.(Round current ratio answers to 2 decimal places, e.g. 15.50, debt to assets ratio and free cash flow answers to 0 decimal places, e.g. 5,275 and all answers to 1 decimal place, e.g. 1.8 or 1.83%.)

RatioTargetWal-Mart
(1)Current ratioenter the current ratio:1enter the current ratio:1
(2)Accounts receivable turnoverenter accounts receivable turnover in timestimesenter accounts receivable turnover in timestimes
(3)Average collection periodenter average collection period in daysdaysenter average collection period in daysdays
(4)Inventory turnoverenter inventory turnover in timestimesenter inventory turnover in timestimes
(5)Days in inventoryenter days in inventory ratiodaysenter days in inventory ratiodays
(6)Profit marginenter percentages%enter percentages%
(7)Asset turnoverenter asset turnover in timestimesenter asset turnover in timestimes
(8)Return on assetsenter percentages%enter percentages%
(9)Return on common stockholders’ equityenter percentages%enter percentages%
(10)Debt to assets ratioenter percentages%enter percentages%
(11)Times interest earnedenter times interest earnedtimesenter times interest earnedtimes
(12)Free cash flow$enter a dollar amount$enter a dollar amount
Answered Same DayMar 21, 2022

Solution

Tanmoy answered on Mar 21 2022
67 Votes
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