# Class Accounting

### Problem 2-7A

Selected financial data of two competitors, Target and Wal-Mart, are presented here. (All dollars are in millions.) Suppose the data were taken from the 2017 financial statements of each company.

 Target(1/31/17) Wal-Mart(1/31/17) Income Statement Data for Year Net sales \$62,500 \$401,244 Cost of goods sold 41,750 305,347 Selling and administrative expenses 15,875 69,415 Interest expense 1,188 2,407 Other income 26 4,213 Income taxes 1,389 9,838 Net income \$ 2,324 \$ 18,450
 Target Wal-Mart Balance Sheet Data (End of Year) Current assets \$16,800 \$ 49,400 Noncurrent assets 25,300 112,000 Total assets \$42,100 \$161,400 Current liabilities \$11,400 \$ 56,700 Long-term liabilities 20,000 44,900 Total stockholders’ equity 10,700 59,800 Total liabilities and stockholders’ equity \$42,100 \$161,400 Net cash provided by operating activities \$4,480 \$24,500 Cash paid for capital expenditures \$3,440 \$11,800 Dividends declared and paid on common stock \$480 \$3,700 Weighted-average shares outstanding (millions) 770 4,000

For each company, compute these values and ratios. (All Dollars Are in Millions) (Round Current ratio and Earnings per share to 2 decimal places, e.g. 15.25 and Debt to assets ratio to 1 decimal place, e.g. 78.9%. If answer is negative enter it with a negative sign preceding the number e.g. -15,000 or in parentheses e.g. (15,000).)

 Target Wal-Mart (a) Working capital \$ \$ (b) Current ratio :1 :1 (c) Debt to assets ratio % % (d) Free cash flow \$ \$ (e) Earnings per share \$ \$
 (f) Which company has better liquidity? TargetWal-Mart Which company has better solvency?

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.