Help in ACC 280Help in XACC 280Problem 15-5 (P15-5)Selected financial data of Target and Wal-Mart for 2005 are presented here (in millions).Target Wal-MartCorporation Stores Inc.Income Statement Data for YearNet sales $45 682 $285 222Cost of goods sold 31 445 219 793Selling and administrative expenses 10 480 51 354Interest expense 570 986Other income (expense) 1 157 2 767Income tax expense 1 146 5 589Net income $ 3 198 $ 10 267Balance Sheet Data (End of Year)Current assets $13 922 $ 38 491Noncurrent assets 18 371 81 732Total assets $32 293 $120 223Current liabilities $ 8 220 $ 42 888Long-term debt 11 044 27 939Total stockholders’ equity 13 029 49 396Total liabilities and stockholders’ equity $32 293 $120 223Total assets $31 416 $105 405Total stockholders’ equity 11 132 43 623Current liabilities 8 314 40 364Total liabilities 20 284 61 782Other DataAverage net receivables $4 845 $ 1 485Average inventory 4 958 28 030Net cash provided by operating activities 3 821 15 044Instructions(a) For each company compute the following ratios.(1) Current. (7) Asset turnover.(2) Receivables turnover. (8) Return on assets.(3) Average collection period. (9) Return on common stockholders’ equity.(4) Inventory turnover. (10) Debt to total assets.(5) Days in inventory. (11) Times interest earned.(6) Profit margin.(b) Compare the liquidity solvency and profitability of the two companies.
