2024 – Selected financial data of Target and Wal Mart for 2005 are presented here in millions Target Corporation

Selected financial data of Target and Wal-Mart for 2005 are presented here (in millions). Target Corporation Wal-Mart Stores, Inc. Income Statement Data for Year Net sales $45,682 $285,222 Cost of goods sold 31,445 219,793 Selling and administrative expenses 10,480 51,354 Interest expense 570 986 Other income (expense) 1,157 2,767 Income tax expense 1,146 5,589 Net income $ 3,198 $ 10,267 Balance Sheet Data (End of Year) Current assets $13,922 $ 38,491 Noncurrent assets 18,371 81,732 Total assets $32,293 $120,223 Current liabilities $ 8,220 $ 42,888 Long-term debt 11,044 27,939 Total stockholders’ equity 13,029 49,396 Total liabilities and stockholders’ equity $32,293 $120,223 Beginning-of-Year Balances Total assets $31,416 $105,405 Total stockholders’ equity 11,132 43,623 Current liabilities 8,314 40,364 Total liabilities 20,284 61,782 Other Data Average net receivables $4,845 $ 1,485 Average inventory 4,958 28,030 Net cash provided by operating activities 3,821 15,044 Instructions a. For each company, compute the following ratios. 1. Current. 2. Receivables turnover. 3. Average collection period. 4. Inventory turnover. 5. Days in inventory. 6. Profit margin. 7. Asset turnover. 8. Return on assets. 9. Return on common stockholders’ equity. 10. Debt to total assets. 11. Times interest earned. b. Compare the liquidity, solvency, and profitability osf the two companies.