Selected financial data of Target Corporation and Wal-Mart Stores, Inc. for a re
ID: 2489067 • Letter: S
Question
Selected financial data of Target Corporation and Wal-Mart Stores, Inc. for a recent year are presented here (in millions).
Target
Corporation
Wal-Mart
Stores, Inc.
Income Statement Data for Year
Balance Sheet Data (End of Year)
Beginning-of-Year Balances
Other Data
(a)
For each company, compute the following ratios. (Use 365 days for calculation. Round all answers to 1 decimal place, e.g. 1.6, or 1.6%.)
Ratio
Target
Wal-Mart
Target
Corporation
Wal-Mart
Stores, Inc.
Income Statement Data for Year
Net sales $61,471 $374,526 Cost of goods sold 41,895 286,515 Selling and administrative expenses 16,200 70,847 Interest expense 647 1,798 Other income (expense) 1,896 4,273 Income tax expense 1,776 6,908 Net income $ 2,849 $ 12,731Balance Sheet Data (End of Year)
Current assets $18,906 $ 47,585 Noncurrent assets 25,654 115,929 Total assets $44,560 $163,514 Current liabilities $11,782 $ 58,454 Long-term debt 17,471 40,452 Total stockholders’ equity 15,307 64,608 Total liabilities and stockholders’ equity $44,560 $163,514Beginning-of-Year Balances
Total assets $37,349 $151,587 Total stockholders’ equity 15,633 61,573 Current liabilities 11,117 52,148 Total liabilities 21,716 90,014Other Data
Average net accounts receivable $ 7,124 $ 3,247 Average inventory 6,517 34,433 Net cash provided by operating activities 4,125 20,354Explanation / Answer
Answer 1. Current Ratio = Current Assets / Current Liabilities Target Wal-Mart Current Assets 18,906.00 47,585.00 Current Liabilities 11,782.00 58,454.00 Current Ratio 1.60 : 1 0.81 : 1 Answer 2. Accounts Receivable Turnover = Net Sales / Average Accounts Receivables Target Wal-Mart Net Sales 61,471.00 374,526.00 Avg. Net Accounts Receivables 7,124.00 3,247.00 Accounts Receivables Tunover 8.62 Times 115.34 Times Answer 3. Average Collection Period = 365 Days / Accounts Receivables Turnover Target Wal-Mart Accounts Receivables Tunover 8.62 Times 115.34 Times Avg. Collection Period 42.30 Days 3.16 Days Answer 4. Inventory Turnover = Sales / Avg. Inventory Target Wal-Mart Net Sales 61,471.00 374,526.00 Avg. Inventory 6,517.00 34,433.00 Inventory Turnover 9.43 Times 10.88 Times Answer 5. Days in Inventory = 365 Days / Inventory Turnover Ratio Target Wal-Mart Inventory Turnover 9.43 Times 10.88 Times Days in Inventory 38.70 Days 33.56 Days As per Chegg Guidelines, You can ask only one question at a time having four subparts. For other parts or Questions please ask it again.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.