Target Wal-Mart Corporation Stores, Inc. Income Statement Data for Year Net sale
ID: 2434913 • Letter: T
Question
Target Wal-MartCorporation 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
$ 12,731
Balance 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
$163,514
Beginning-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 90,014
Other Data
Average net receivables $7,124 $ 3,247
Average inventory 6,517 34,433
Net cash provided by operating activities 4,125 20,354
Instructions
For each company, compute the following ratios. (Round answers to 1 decimal place, e.g. 10.5.)
Target Walmart
(1) Current :1 :1
(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
Click here if you would like to Show Work for this question
Explanation / Answer
Details Target Wal Mart current Ratio (Current Assets / Current Liabilities ) 1.6 0.81 Receivables Turnover Ratio ( Credit sales / Average Accounts Receivable) 8.63 115.34 Average collection period 41.72 3.12 (Trade Debtors* number of working Days ) / Credit sales Inventory Turnover 6.43 8.32 (Cost of Goods Sold / Average Inventory ) Days in Inventory ( Average Inventory / COGS per day 56 43.26 Profit Margin 4.63% 3.34% (Net Income / Sales ) Net Asset Turnover Ratio 1.37 2.29 (Net Sales / Total Assets ) Return on Assets 6.39% 7.78% (Net Income/ Total Assets ) Return on Common Stock Equity 18.61% 19.70% (N.I / Stock Holders'Equity ) Debt to Assets Turnover Ratio 1.52 1.65 (Debt / Assets ) Times Interest earned 5.4 8.08 (Net Income before Interest / Interest Expense 0
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.