Couldn’t fit first table into one photo, so it’s in two and need the answers for
ID: 2545278 • Letter: C
Question
Couldn’t fit first table into one photo, so it’s in two and need the answers for the rest of the problem (: 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 sold 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 s 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' equit $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 $163,514Explanation / Answer
5)
Day’s in inventory = Ending Inventory/Cost of Goods Sold x 365
For Target Corporation:
Day’s in inventory = $ 6,517/$ 41,895 x 365
= 0.155556 x 365 = 56.77777778 or 56.8 days
For Wal-Mart Stores, Inc:
Day’s in inventory = $ 34,433/$ 286,515 x 365
= 0.120179 x 365 = 43.86522521 or 43.9 days
6)
Profit Margin = Net profit /Net sales
For Target Corporation:
Profit Margin = $ 2,849/$ 61,471 = 0.046347 or 4.6 %
For Wal-Mart Stores, Inc:
Profit Margin = $ 12,731/$ 374,526 = 0.033992 or 3.4 %
7)
Asset Turnover = Net sales /Average total assets
For Target Corporation:
Asset Turnover = $ 61,471/ [($ 37,349 + $ 18,906)/2]
= $ 61,471/ [($ 56,255)/2]
= $ 61,471/ ($ 28,127.5) = 2.185441294 or 2.2 times
For Wal-Mart Stores, Inc:
Asset Turnover = $ 374,526/ [($ 151,587 + $ 47,585)/2]
= $ 374,526/ [($ 199,172)/2]
= $ 374,526/ $ 99,586 = 3.760829836 or 3.8 times
8)
Return on Assets Ratio (ROA) = Net Income /Average total assets
For Target Corporation:
Return on Assets Ratio (ROA) = $ 2,849/$ 28,127.5 = 0.101289 or 10.1 %
For Wal-Mart Stores, Inc:
Return on Assets Ratio (ROA) = $ 12,731/$ 99,586 = 0.127839 or 12.8 %
Answer:
Target Corporation
Wal-Mart Stores, Inc
Day’s in inventory
56.8
43.9
Days
Profit Margin
4.6
3.4
%
Asset Turnover
2.2
3.8
times
Return on Assets
10.1
12.8
%
****Answered four questions.
Target Corporation
Wal-Mart Stores, Inc
Day’s in inventory
56.8
43.9
Days
Profit Margin
4.6
3.4
%
Asset Turnover
2.2
3.8
times
Return on Assets
10.1
12.8
%