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Selected hypothetical financial data of Target and Wal-Mart for 2022 are presented here (in millions). Target Corporation Wal-Mart Stores, Inc. Income Statement Data for Year Net sales $66,700 $418,000 Cost of goods sold 45,000 309,000 Selling and administrative expenses 15,200 78,000 Interest expense 740 1,900 Other income (expense) (95) (420) Income tax expense 1,400 6,700 Net income $ 4,265 $ 21,980 Balance Sheet Data (End of Year) Current assets $18,000 $45,000 Noncurrent assets 25,600 120,000 Total assets $43,600 $165,000 Current liabilities $11,000 $56,000 Long-term debt 17,200 44,000 Total stockholders' equity 15,400 65,000 Total liabilities and stockholders' equity $43,600 $165,000 Beginning-of-Year Balances Total assets $45,000 $ 163,000 Total stockholders' equity 13,400 65,000 Current liabilities 10,600 58,000 Total liabilities 31,600 98,000 Other Data Average net accounts receivable $7,500 $3,900 Average inventory 7,000 32,800 Net cash provided by operating activities 5,800 26,900 Capital expenditures 1,700 11,800 Dividends 450 4,400 For each company, compute the following ratios. (Round current ratio answers to 2 decimal places, e.g. 15.50, debt to assets ratio and free cash flow answers to O decimal places, eg. 5,275 and all answers to 1 decimal place, e.g. 1.8 or 1.83%.) Ratio Target Wal-Mart (1) Current ratio 1.63 :1 0.8 :1 (2) Accounts receivable turnover 8.89 times 107.18 times (3) Average collection period 41 days 3.41 days Inventory turnover 6.43 times 9.42 times (5) Days in inventory 56.77 days 38.75 days Profit margin 6.39 5.26 Asset turnover 1.51 2.55 times Return on assets 9.63 13.4 % (9) Return on common stockholders' equity 26.49 27.05 (10) Debt to assets ratio 64.68 60.61 (11) Times interest earned 8.66 16.09 times (12) Free cash flow 3650 10700

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