Problem -
Selected financial data of Target 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
|
$67,390
|
$405,046
|
|
Cost of goods sold
|
45,725
|
304,657
|
|
Selling and administrative expenses
|
13,469
|
79,607
|
|
Interest expense
|
757
|
1,884
|
|
Other income (expense)
|
(2,944)
|
2,576
|
|
Income tax expense
|
1,575
|
7,139
|
|
Net income
|
$ 2,920
|
$ 14,335
|
|
|
|
|
|
Balance Sheet Data (End of Year)
|
|
Current assets
|
$17,213
|
$ 48,331
|
|
Noncurrent assets
|
26,492
|
122,375
|
|
Total assets
|
$43,705
|
$170,706
|
|
Current liabilities
|
$10,070
|
$ 55,561
|
|
Long-term debt
|
18,148
|
44,396
|
|
Total stockholders' equity
|
15,487
|
70,749
|
|
Total liabilities and stockholders' equity
|
$43,705
|
$170,706
|
|
|
|
|
|
Beginning-of-Year Balances
|
|
Total assets
|
$44,533
|
$163,429
|
|
Total stockholders' equity
|
15,347
|
65,285
|
|
Current liabilities
|
11,327
|
55,390
|
|
Total liabilities
|
29,186
|
98,144
|
|
|
|
|
|
Other Data
|
|
Average net accounts receivable
|
$ 6560
|
$ 4,025
|
|
Average inventory
|
7,388
|
33,836
|
|
Net cash provided by operating activities
|
5,271
|
26,249
|
Assume that net sales given are the net credit sales.
Compute the Debts To Totals Assets ratio for each company.