——————-——————-———— G Briet Exercise 1-6 c secure Suppose selected financial data
ID: 2332975 • Letter: #
Question
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G Briet Exercise 1-6 c secure Suppose selected financial data of Target and Wal-Mart for 2020 are presented here n milions) Stores, Ine. Cost of goods sold Selling and administrative expenses Interest expense Other income (expense) income tax expense $405,214 304,657 79,607 2,065 (411) 5,583 15,101 (94) 14,335 Balance Sheet Data (End of $18,424 6,109 Noncurrent assets Current liabiinies Long-term debt Total stockhalders equity Total labilities and stockholders equity 122,375 $170,706 55,561 44,089 1,056 170,706 11,327 7,859 163,429 Total stockholders' equity 13,712 10,512 55,390 97,747 Total liablities Average net accounts receivable Averape invertory Net cash provided by operating activities Capital expenditures 6,942 1,729 4,217 For eac, company, compute the following ratios (Enter free cash now in milions. Round Current ratio to 2 decimal places, .g. answers to 1 deci nal place, e.g. 1.6, or 1.6%, use 365 days for calculation.) 1.67. Round Debt to assets 10 to O decinal places e aore. Round al dhe
Explanation / Answer
Days in inventory
Target corp. Walmart stores Current ratio Current assets/current liabilities 18424/11327 1.626556 :1 48331/55561 0.869873 :1 Accounts receivables turnover Credit sales / average net accounts receivable 65357/7525 8.685316 Times 408214/4025 101.4196 Times Average collection period 365 days / accounts receivable turnover ratio 365/8.68 42.05069 days 365/101.42 3.598896 days Inventory turnover Cost of goods sold / average inventory 45583/6942 6.566263 times 304657/33836 9.003931 timesDays in inventory
365/Inventory turnover ratio 365/6.56 55.64024 days 365/9 40.55556 days Profit margin Net income / sales 2488/65357 0.038068 14335/408214 0.035116 3.806784 % 3.511639 % Asset turnover net sales / average of total assets 65357/44320 1.474662 times 408214/167068 2.4434 times Average of total assets 44319.5 167067.5 Return on assets Net income / average of total assets 2488/44320 0.056137 14335/167068 0.085803 5.613718 % 8.580339 % Return on common stock holders equity Net income - dividend / average of common stock holders equity (1384-496)/14530 0.061115 0.042738668 6.111493 % 4.273866811 % Average of common stock holders equity 14529.5 68369 Debt to assets ratio Total liabilities / total assets (11327+17859)/44533 0.655379 (55561+44089)/170706 0.583752 65.53792 % 58.37522 % Times interest earned EBIT / interest 4579/707 6.476662 times 23559/2065 11.40872 times EBIT = Net income before interest and tax 4579 23559 Free cash flow Operating cash flows - capital expenditure 5881-1729 4152 millions 26249-12184 14065 millions Duke company Lord company Return on assets Net income / average of total assets 62% 81% Net income 512694 173290 Average of total assets 827700 213200 0.61942008 0.812805 Return on common stock holders equity Net income - dividend / average of common stock holders equity 103% 141% Net income 512694 173290 Average of common stock holders equity 496500 123000 1.032616314 1.408862Related Questions
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