Pikes Peak Community College X CCCS Login XACC122 M3C18HOMEWORK -x WileyPLUS - C

Question

Pikes Peak Community College X CCCS Login XACC122 M3C18HOMEWORK -x WileyPLUS - Chegg Study | Guided Solution X T https://edugen.wi 80% Q,search WileyPLS Winosndt hount c ASSIGNMENT RESOURCES ACC122 Selected financiel date of Target Corporation and Wal-Mart Stores, Inc. for arecent year are presented here (in millions). ? Question? d Question 3 Target Wal-Mart Stores, Inc. Income Statement Data for Year Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income (xpense) Income tex expense Net income 561,471 41,893 16,200 647 1,B96 1.776 2,849 374.526 286,315 70.847 1,798 4,273 6.908 12,731 Review Results by Study Objective 5 Balance sheet Data (End of Year) Current assets Noncurrent asset: Total assets Currant liabilities Long-term debt Total stockholders' equity Total liabilities and stockholders equity $19,906 23,654 $44,560 S11,782 17,471 15,307 44,560 $47,585 115,929 $163,514 58,454 40.452 64.608 Total assets Total stockholders' equity Current liabilities Total liabilitia: $37,349 15,633 11,117 21,716 $151,587 61.573 52,148 90,014 Other Data Average net accounts receivable s 7,124 s 3,247 Average inventory 6,517 34,433 11:46 AM O Type here to search DIe 3/29/2018

Explanation / Answer

Answer a:

Part 1:

For Target:

Current Ratio = Current Assets / Current Liabilities
Current Ratio = $18,906 / $11,117
Current Ratio = 1.7 : 1

For Wal-Mart:

Current Ratio = Current Asset / Current Liabilities
Current Ratio = $47,585 / $52,148
Current Ratio =0.9 :1

Part 2:

For Target:

Accounts Receivable Turnover = Sales / Average Net Accounts Receivable
Accounts Receivable Turnover = $61,471 / $7,124
Accounts Receivable Turnover = 8.6 times

For Wal-Mart:

Accounts Receivable Turnover = Sales / Average Net Accounts Receivable
Accounts Receivable Turnover = $374,526 / $3,247
Accounts Receivable Turnover = 115.3 times

Part 3:

For Target:

Average Collection Period = 365 days / Accounts Receivable Turnover
Average Collection Period 365 days / 8.6
Average Collection Period = 42.4 days

For Wal-Mart:

Average Collection Period = 365 days / Accounts Receivable Turnover
Average Collection Period 365 days / 115.3
Average Collection Period = 3.2 days

Part 4:

For Target:

Inventory Turnover = COGS / Average Inventory
Inventory Turnover = $41,895 / $6,517
Inventory Turnover = 6.4 times

For Wal-Mart:

Inventory Turnover = COGS / Average Inventory
Inventory Turnover = $286,515 / $34,433
Inventory Turnover = 8.3 times

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