Suppose selected financial data of Target and Wal-Mart for 2014 are presented here (in millions).
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Target
Corporation
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Wal-Mart
Stores, Inc.
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Income Statement Data for Year
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Net sales
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$65,058
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$412,070
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Cost of goods sold
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44,493
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300,265
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Selling and administrative expenses
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14,313
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80,030
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Interest expense
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670
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2,152
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Other income (expense)
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(88)
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(395)
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Income tax expense
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1,470
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7,329
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Net income
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$ 4,024
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$ 21,899
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Balance Sheet Data
(End of Year)
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Current assets
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$18,846
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$48,777
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Noncurrent assets
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25,173
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120,791
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Total assets
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$44,019
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$169,568
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Current liabilities
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$10,432
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$55,783
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Long-term debt
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17,183
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44,562
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Total stockholders' equity
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16,404
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69,223
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Total liabilities and stockholders' equity
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$44,019
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$169,568
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Beginning-of-Year Balances
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Total assets
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$43,699
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$164,440
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Total stockholders' equity
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14,470
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65,233
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Current liabilities
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10,130
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55,092
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Total liabilities
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29,229
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99,207
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Other Data
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Average net accounts receivable
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$7,545
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$3,954
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Average inventory
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6,834
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34,287
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Net cash provided by operating activities
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5,765
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26,622
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Capital expenditures
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1,799
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11,751
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Dividends
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512
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4,215
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(a) For each company, compute the following ratios. (Round all answers to 2 decimal places, e.g. 1.83 or 12.61%.)
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Target
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Wal-Mart
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(1)
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Current ratio.
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:1
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:1
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(2)
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Accounts receivable turnover.
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times
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times
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(3)
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Average collection period.
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days
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days
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(4)
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Inventory turnover.
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times
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times
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(5)
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Days in inventory.
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days
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days
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(6)
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Profit margin.
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%
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%
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(7)
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Asset turnover.
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times
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times
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(8)
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Return on assets.
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%
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%
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(9)
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Return on common stockholders' equity.
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%
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%
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(10)
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Debt to assets ratio.
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%
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%
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(11)
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Times interest earned.
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times
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times
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(12)
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Current cash debt coverage.
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times
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times
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(13)
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Cash debt coverage.
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times
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times
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(14)
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Free cash flow.
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$
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$
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