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eooo Verizon 7:56 PM Unit 1: Chapter 13 Financial Analysis: The Yeas Dee 305,678

ID: 2467744 • Letter: E

Question

eooo Verizon 7:56 PM Unit 1: Chapter 13 Financial Analysis: The Yeas Dee 305,678 3447 650 (93) 1.99) (402) Other income (experne) Net income $10,073$5506 Total stockholders equity Total labilibes and 163,877 Total lablines Net cash previded by operaning 5,7525,90 11.568 (a) For each company, compute the following ratios. (Round all answers to 2 decimal places, eg. 1.83 or 12.61%.) ) Current ratio. (3) Average colection period (4) Invenory Bunever (5) Days in inventory. () Proft margin 50 imes .7 ays 898 oes 0 days 255 time (8) Returm on assets 09) 0) Debt to asets rabo. 11) Times inbenest earned 2) Curent cash deb ceverage 13) Cash dbr ceverage (14) Free cash Click i te Show Wark for this Courses Calendar Todo Notifications Messages

Explanation / Answer

Return on Assets = Net Income /Average total Assets

Target Company = 4195/(45249+43310)/2 = 4195/44280 = 0.095

WAlmart = 22356/(169313+163877)/2 = 22356/166595 =0.13

Return on Common Shareholders equity = Net Income -Preferred dividend /Average common shareholders equityx100

Target company = 4195/(17149+14000)/2 = 26.93 %

Walmart = 22356/(68852+64627)/2 = 22356/66740x100 = 33.50%

Debt to Assets ratio = Total Liabilities/Total Assets

Target Company = 18027/45249 = 0.40

Walmart Company = 44462/169313 = 0.26

Times Interest earned = EBIT/Interest Expense

TArget COmpany = 65331-44580-14476/650 = 6275/650=9.65

WAlmart = 417129-305678-79396 /1993 = 32055/1993 = 16.08

Current cash debt coverage ratio = Net cash provided by opearting Activities/Average current liabilities

Target Company= 5751/(10073+10569)/2 = 5751/10321=0.55

Walmart Company = 25908/(55999+54254)/2 = 25908/55127 = 0.47

Free Cash flow = Operating cashflow - capital exenditure

TArget Company = 5751-1691 = 4060

Walmart Company = 25900-11568 = $14332