Question 1 Selected financial data of Target Corporation and Wal-Mart Stores, In

ID: 2554837 • Letter: Q

Question

Question 1 Selected financial data of Target Corporation and Wal-Mart Stores, Inc. for a recent year are presented here (in millions) Target Corporation Wal-Mart Stores, Inc. Income Statement Data for Year Net sales Cost of goods solod 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 Noncurrent assets Total assets Current liabilities Long-term debt Total stockholders' equity Total liabilities and stockholders' equity $18,906 25,654 $44,560 $11,782 17,471 15,307 $44,560 47,585 115,929 $163,514 $58,454 40,452 64,608 $163,514 Beginning-of-Year Balances Total assets Total stockholders' equity Current liabilities Total liabilities $37,349 15,633 11,117 21,716 $151,587 61,573 52,148 90,014 Other Data Average net accounts receivable Average inventory Net cash provided by operating activities $ 7,124 6,517 4,125 $ 3,247 34,433 20,354

Explanation / Answer

18906/11782

1.6

47585/58454

.80

61471/7124

8.6

374526/3247

115.3

365/8.6

42.4

365/115.3

3.2

41895/6517

6.4

286515/34433

8.3

365/6.4

365/8.3

2849/61471

4.6%

12731/374526

3.4%

61471/44560

1.4

374526/163514

2.3

2849/[37349+44560]/2

2849/40954.5

.07 or 7%

12731/[151587+163514]/2

12731/157550.5

8.1%

2849/[15633+15307]/2

2849/15470

18.4%

12731/[61573+64608]/2

12731/63090.5

20.2%%

[11782+17471]/44560

[58454+40452]/163514

[61471-41895-16200]/647

5.2

[374526-286515-70847]/1798

9.5

EBIT =Sales -COGS -Selling and administrative expense

Formula Target Walmart 1 current asset /current liabilities