13 5 a CAN SOMEONE CORRECT THE ONES I GOT WRONG BELOW? THEY\'RE HIGHLIGHTED IN R
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13 5 a CAN SOMEONE CORRECT THE ONES I GOT WRONG BELOW? THEY'RE HIGHLIGHTED IN RED
Suppose selected financial data of Target and Wal-Mart for 2014 are presented here (in millions) Target Corporation Wal-Mart Stores, Inc. Income Statement Data for Year Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income (expense) Income tax expense Net income $65,357 45,583 15,101 707 $408,214 304,657 79,607 2,065 (94 ) (411) 1,384 $2,488 7,139 $ 14,335 Balance Sheet Data End of Year Current asset Noncurrent assets Total assets Current liabilities Long-term debt Total stockholders' equity Total liabilities and stockholders equity $18,424 26,109 $44,533 $11,327 17,859 15,347 $44,533 $48,331 122,375 $170,706 $55,561 44,089 71,056 $170,706 Beginning-of-Year Balances Total assets Total stockholders' equity Current liabilities Total liabilities $44,106 13,712 10,512 30,394 $163,429 65,682 55,390 97,747 Other Data Average net accounts receivable Average inventory Net cash provided by operating activities Capital expenditures Dividends $4,025 33,836 26,249 12,184 4,217 $7,525 6,942 5,881 1,729 496 (a) For each company, compute the following ratios. (Round all answers to 2 decimal places, e.g. 1.83 or 12.61%.)Explanation / Answer
Target
8) Return on Asset = Net Operating Income/Average Total Asset
Return on Asset = (65357-45583-15101)/((44533+44106)/2)
Return on Asset = 10.54%
9)
Return on Common Stock holder equity = Net Income/(Average Common Stock holder equity)
Return on Common Stock holder equity = 2488/((15347+13712)/2)
Return on Common Stock holder equity = 17.12%
10)
Debt to Asset ratio = (Long term Debt+current liability)/Total Asset
Debt to Asset ratio = (17859+11327)/44533
Debt to Asset ratio = 65.54%
12)
Current cash Debt Coverage = Net Cash provided by Operating Activity / Average Current Liability
Current cash Debt Coverage = 5881/ ((11327+10512)/2)
Current cash Debt Coverage = 0.54
13)
cash Debt Coverage = Net Cash provided by Operating Activity / Average Total Liability
cash Debt Coverage = 5881/((11327+17859+ 30394)/2)
cash Debt Coverage = 0.20
14)
Free Cash Flow = Net cash provided by operating activity - capital expenditure - dividend
Free Cash Flow = 5881-1729 - 496
Free Cash Flow = 3656
Wal Mart
7) Asset Turnover = Sale/Average Total Asset
Asset Turnover = 408214/((163429+170706)/2)
Asset Turnover = 2.44
8) Return on Asset = Net Operating Income/Average Total Asset
Return on Asset = (408214-304657-79607)/((163429+170706)/2)
Return on Asset = 14.34%
9)
Return on Common Stock holder equity = Net Income/(Average Common Stock holder equity)
Return on Common Stock holder equity = 14335/((71056+65682)/2)
Return on Common Stock holder equity = 20.97%
10)
Debt to Asset ratio = (Long term Debt+current liability)/Total Asset
Debt to Asset ratio = (44089+55561)/170706
Debt to Asset ratio = 58.38%
12)
Current cash Debt Coverage = Net Cash provided by Operating Activity / Average Current Liability
Current cash Debt Coverage = 26249/ ((55561+55390)/2)
Current cash Debt Coverage = 0.47
13)
cash Debt Coverage = Net Cash provided by Operating Activity / Average Total Liability
cash Debt Coverage = 26249/((55561+44089+97747)/2)
cash Debt Coverage = 0.27
14)
Free Cash Flow = Net cash provided by operating activity - capital expenditure - dividend
Free Cash Flow = 26249-12184-4217
Free Cash Flow = 9848
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