Assignment RCES Target Corporation Wal-Mart Stores, Inc. rk Income Statement Dat

Question

Assignment RCES Target Corporation Wal-Mart Stores, Inc. rk 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 $61,471 41,895 16,200 647 1,896 1,776 2,849 $374,526 286,515 70,847 1,798 4,273 6,908 $ 12,731 Balance Sheet Data (End of Year) Current assets $ 47.585 115,929 $163.514 58,454 40,452 54,608 $18,906 Total assets Current liabilities $44,560 $11,782 15,307 Total labilities and stockholders' equity Beginning-of-Year Balances $37,349 51,573

Explanation / Answer

61471/40954.5

= 1.5

374526/157550.5

= 2.4

2849/40954.5

.07 or 7%

12731 / 157550.5

.081 or8.1%

2849/15470

18.4%

12731/63090.5

20.2%

[11782+17471]/44560

.7

[58454+40452]/163514

.6

3376/647

5.2

**Average asset :Target : [44560+37349]/2=40954.5

walmart = [163514+151587]/2= 157550.5

**Average equity Target: [15307+1533]/2=15470

walmart = [64608+61573]/2=63090.5

**Income before interest and tax : Target : 61471-41895-16200=3376

walmart = 374526-286515-70847=17164

Formula Target walmart Profit margin Net Income /sales 2849/61471=.046 or 4.6% 12731/374526=3.4% Asset turnover SALES/average asset

61471/40954.5

= 1.5

374526/157550.5

= 2.4

Return on asset net income/average asset

2849/40954.5

.07 or 7%

12731 / 157550.5

.081 or8.1%

return on common stockholders equity net income /average common stock equity

2849/15470

18.4%

12731/63090.5

20.2%

Debt to asset Total liabilities /total asset

[11782+17471]/44560

.7

[58454+40452]/163514

.6

times interest earned Income before interest and tax/Interest

3376/647

5.2

17164/1798=9.5

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