Compute the accounts receivable turnover times

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Reference no: EM132700873

Question - Selected hypothetical financial data of Target and Wal-Mart for 2022 are presented here (in millions).

 

Target Corporation

Wal-Mart Stores, Inc.

Income Statement Data for Year

Net sales

$66,100

$411,000

Cost of goods sold

44,000

302,000

Selling and administrative expenses

15,400

81,000

Interest expense

660

2,100

Other income (expense)

(70)

(420)

Income tax expense

1,400

7,300

Net income

$4,570

$18,180

Balance Sheet Data (End of Year)

Current assets

$17,000

$49,000

Noncurrent assets

26,800

120,000

Total assets

$43,800

$169,000

Current liabilities

$12,000

$54,000

Long-term debt

17,600

45,000

Total stockholders' equity

14,200

70,000

Total liabilities and stockholders' equity

$43,800

$169,000

Beginning-of-Year Balances

Total assets

$43,000

$162,000

Total stockholders' equity

14,400

66,000

Current liabilities

10,600

57,000

Total liabilities

28,600

96,000

Other Data

Average net accounts receivable

$7,900

$4,200

Average inventory

7,200

33,700

Net cash provided by operating activities

5,800

26,200

Capital expenditures

1,700

12,400

Dividends

460

3,600

Required - For each company, compute the following ratios

(1) Current ratio

(2) Accounts receivable turnover times

(3) Average collection period days

(4) Inventory turnover times

(5) Days in inventory days

(6) Profit margin

(7) Asset turnover times

(8) Return on assets

(9) Return on common stockholders' equity

(10) Debt to assets ratio

(11) Times interest earned times

(12) Free cash flow

Reference no: EM132700873

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