Business, 07.06.2021 01:10 sallabar2496

Suppose selected financial data of Target and Wal-Mart for 2017 are presented here (in millions). Target
Corporation

Wal-Mart
Stores, Inc.

Income Statement Data for Year

Net sales
$67,000

$410,000

Cost of goods sold
44,000

302,000

Selling and administrative expenses
14,300

81,000

Interest expense
700

2,000

Other income (expense)
(85

)

(390

)

Income tax expense
1,400

7,000

Net income
$ 6,515

$ 17,610

Balance Sheet Data
(End of Year)

Current assets
$17,000

$49,000

Noncurrent assets
27,500

122,000

Total assets
$44,500

$171,000

Current liabilities
$10,000

$55,000

Long-term debt
18,200

44,000

Total stockholders’ equity
16,300

72,000

Total liabilities and stockholders’ equity
$44,500

$171,000

Beginning-of-Year Balances

Total assets
$43,000

$164,000

Total stockholders’ equity
13,200

64,000

Current liabilities
10,300

56,000

Total liabilities
29,800

100,000

Other Data

Average net accounts receivable
$7,400

$3,800

Average inventory
6,900

33,000

Net cash provided by operating activities
6,000

27,300

Capital expenditures
1,800

11,700

Dividends
520

3,900

(a) For each company, compute the following ratios. (Round all answers to 2 decimal places, e. g. 1.83 or 1.83%.)

Ratio
Target

Wal-Mart

(1) Current ratio
Entry field with correct answer

:1
Entry field with correct answer

:1
(2) Accounts receivable turnover
Entry field with incorrect answer

times
Entry field with incorrect answer

times
(3) Average collection period
Entry field with incorrect answer

days
Entry field with incorrect answer

days
(4) Inventory turnover
Entry field with incorrect answer

times
Entry field with incorrect answer

times
(5) Days in inventory
Entry field with incorrect answer

days
Entry field with incorrect answer

days
(6) Profit margin
Entry field with incorrect answer

%
Entry field with incorrect answer

%
(7) Asset turnover
Entry field with incorrect answer

times
Entry field with incorrect answer

times
(8) Return on assets
Entry field with incorrect answer

%
Entry field with incorrect answer

%
(9) Return on common stockholders’ equity
Entry field with incorrect answer

%
Entry field with incorrect answer

%
(10) Debt to assets ratio
Entry field with incorrect answer

%
Entry field with incorrect answer

%
(11) Times interest earned
Entry field with incorrect answer

times
Entry field with incorrect answer

times
(12) Free cash flow $
Entry field with incorrect answer

$
Entry field with incorrect answer

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 08:00

Shrieves casting company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by sidney johnson, a recently graduated mba. the production line would be set up in unused space in the main plant. the machinery’s invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. the machinery has an economic life of 4 years, and shrieves has obtained a special tax ruling that places the equipment in the macrs 3-year class. the machinery is expected to have a salvage value of $25,000 after 4 years of use. the new line would generate incremental sales of 1,250 units per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. each unit can be sold for $200 in the first year. the sales price and cost are both expected to increase by 3% per year due to inflation. further, to handle the new line, the firm’s net working capital would have to increase by an amount equal to 12% of sales revenues. the firm’s tax rate is 40%, and its overall weighted average cost of capital, which is the risk-adjusted cost of capital for an average project (r), is 10%. define “incremental cash flow.” (1) should you subtract interest expense or dividends when calculating project cash flow?

Answers: 1

Answer

Business, 22.06.2019 17:10

Calculate riverside’s financial ratios for 2014. assume that riverside had $1,000,000 in lease payments and $1,400,000 in debt principal repayments in 2014. (hint: use the book discussion to identify the applicable ratios.)

Answers: 3

Answer

Business, 22.06.2019 19:20

Why is following an unrelated diversification strategy especially advantageous in an emerging economy? a. it allows the conglomerate to overcome institutional weaknesses in emerging economies. b. it allows the conglomerate to form a monopoly in emerging economies. c. it allows the conglomerate to use well-defined legal systems in emerging economies. d. it allows the conglomerate to take advantage of strong capital markets in emerging economies.

Answers: 1

Answer

Business, 22.06.2019 21:10

Your family business uses a secret recipe to produce salsa and distributes it through both smaller specialty stores and chain supermarkets. the chain supermarkets have been demanding sizable discounts, but you do not want to drop your prices to the specialty stores. true or false: the robinson-patman act limits your ability to offer discounts to the chain supermarkets while leaving the price high for the smaller stores. true false

Answers: 3

Answer

You know the right answer?

Suppose selected financial data of Target and Wal-Mart for 2017 are presented here (in millions). T...

Questions