Description Current Attempt in Progress 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 $65,000 $406,000 Cost of goods sold 46,000 306,000 Selling and administrative expenses 14,800 76,000 Interest expense 660 2,200 Other income (expense) (70 ) (390 ) Income tax expense 1,300 6,500 Net income $ 2,170 $ 14,910 Balance Sheet Data (End of Year) Current assets $19,000 $49,000 Noncurrent assets 26,100 123,000 Total assets $45,100 $172,000 Current liabilities $12,000 $55,000 Long-term debt 17,400 43,000 Total stockholders’ equity 15,700 74,000 Total liabilities and stockholders’ equity $45,100 $172,000 Beginning-of-Year Balances Total assets $45,000 $162,000 Total stockholders’ equity 12,900 66,000 Current liabilities 10,300 57,000 Total liabilities 32,100 96,000 Other Data Average net accounts receivable $8,000 $3,800 Average inventory 6,800 33,200 Net cash provided by operating activities 5,900 27,400 Capital expenditures 1,700 11,600 Dividends 510 4,200 For each company, compute the following ratios. (Round current ratio answers to 2 decimal places, e.g. 15.50, debt to assets ratio and free cash flow answers to 0 decimal places, e.g. 5,275 and all answers to 1 decimal place, e.g. 1.8 or 1.83%.) Ratio Target Wal-Mart (1) Current ratio enter the current ratio :1 enter the current ratio :1 (2) Accounts receivable turnover enter accounts receivable turnover in times times enter accounts receivable turnover in times times (3) Average collection period enter average collection period in days days enter average collection period in days days (4) Inventory turnover enter inventory turnover in times times enter inventory turnover in times times (5) Days in inventory enter days in inventory ratio days enter days in inventory ratio days (6) Profit margin enter percentages % enter percentages % (7) Asset turnover enter asset turnover in times times enter asset turnover in times times (8) Return on assets enter percentages % enter percentages % (9) Return on common stockholders’ equity enter percentages % enter percentages % (10) Debt to assets ratio enter percentages % enter percentages % (11) Times interest earned enter times interest earned times enter times interest earned times (12) Free cash flow $ enter a dollar amount $ enter a dollar amount Current Attempt in Progress Here are the comparative income statements of Sandhill Corporation. SANDHILL CORPORATION Comparative Income Statement For the Years Ended December 31 2022 2021 Net sales $628,300 $531,300 Cost of goods sold 456,400 409,900 Gross Profit 171,900 121,400 Operating expenses 71,400 41,100 Net income $ 100,500 $ 80,300 (a) Prepare a horizontal analysis of the income statement data for Sandhill Corporation, using 2021 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.) SANDHILL CORPORATION Comparative Income Statement choose the accounting period For the Years Ended December 31 For the Month Ended December 31 December 31 Increase or (Decrease) During 2022 2022 2021 Amount Percentage Net sales $628,300 $531,300 $ enter a dollar amount enter percentages rounded to 1 decimal place % Cost of goods sold 456,400 409,900 enter a dollar amount enter percentages rounded to 1 decimal place % Gross Profit 171,900 121,400 enter a dollar amount enter percentages rounded to 1 decimal place % Operating expenses 71,400 41,100 enter a dollar amount enter percentages rounded to 1 decimal place % Net income $ 100,500 $ 80,300 $ enter a dollar amount enter percentages rounded to 1 decimal place % (b) Prepare a vertical analysis of the income statement data for Sandhill Corporation for both years. (Round percentages to 1 decimal place, e.g. 12.1%.) SANDHILL CORPORATION Condensed Income Statements choose the accounting period For the Years Ended December 31 For the Month Ended December 31 December 31 2022 2021 $ Percent $ Percent Net sales $628,300 enter percentages rounded to 1 decimal place % $531,300 enter percentages rounded to 1 decimal place % Cost of goods sold 456,400 enter percentages rounded to 1 decimal place % 409,900 enter percentages rounded to 1 decimal place % Gross Profit 171,900 enter percentages rounded to 1 decimal place % 121,400 enter percentages rounded to 1 decimal place % Operating expenses 71,400 enter percentages rounded to 1 decimal place % 41,100 enter percentages rounded to 1 decimal place % Net income $ 100,500 enter percentages rounded to 1 decimal place % $ 80,300 enter percentages rounded to 1 decimal place % Tags: gross profit net income Net Sales operating expenses good sold User generated content is uploaded by users for the purposes of learning and should be used following Studypool’s honor code & terms of service.
Description
Current Attempt in Progress
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
$65,000
$406,000
Cost of goods sold
46,000
306,000
Selling and administrative expenses
14,800
76,000
Interest expense
660
2,200
Other income (expense)
(70
)
(390
)
Income tax expense
1,300
6,500
Net income
$ 2,170
$ 14,910
Balance Sheet Data
(End of Year)
Current assets
$19,000
$49,000
Noncurrent assets
26,100
123,000
Total assets
$45,100
$172,000
Current liabilities
$12,000
$55,000
Long-term debt
17,400
43,000
Total stockholders’ equity
15,700
74,000
Total liabilities and stockholders’ equity
$45,100
$172,000
Beginning-of-Year Balances
Total assets
$45,000
$162,000
Total stockholders’ equity
12,900
66,000
Current liabilities
10,300
57,000
Total liabilities
32,100
96,000
Other Data
Average net accounts receivable
$8,000
$3,800
Average inventory
6,800
33,200
Net cash provided by operating activities
5,900
27,400
Capital expenditures
1,700
11,600
Dividends
510
4,200
For each company, compute the following ratios. (Round current ratio answers to 2 decimal places, e.g. 15.50, debt to assets ratio and free cash flow answers to 0 decimal places, e.g. 5,275 and all answers to 1 decimal place, e.g. 1.8 or 1.83%.)
Ratio Target
Wal-Mart
(1)
Current ratio
enter the current ratio
:1
enter the current ratio
:1
(2)
Accounts receivable turnover
enter accounts receivable turnover in times
times
enter accounts receivable turnover in times
times
(3)
Average collection period
enter average collection period in days
days
enter average collection period in days
days
(4)
Inventory turnover
enter inventory turnover in times
times
enter inventory turnover in times
times
(5)
Days in inventory
enter days in inventory ratio
days
enter days in inventory ratio
days
(6)
Profit margin
enter percentages
%
enter percentages
%
(7)
Asset turnover
enter asset turnover in times
times
enter asset turnover in times
times
(8)
Return on assets
enter percentages
%
enter percentages
%
(9)
Return on common stockholders’ equity
enter percentages
%
enter percentages
%
(10)
Debt to assets ratio
enter percentages
%
enter percentages
%
(11)
Times interest earned
enter times interest earned
times
enter times interest earned
times
(12)
Free cash flow
$
enter a dollar amount
$
enter a dollar amount
Current Attempt in Progress
Here are the comparative income statements of Sandhill Corporation.
SANDHILL CORPORATION
Comparative Income Statement
For the Years Ended December 31
2022
2021
Net sales
$628,300
$531,300
Cost of goods sold
456,400
409,900
Gross Profit
171,900
121,400
Operating expenses
71,400
41,100
Net income
$ 100,500
$ 80,300
(a)
Prepare a horizontal analysis of the income statement data for Sandhill Corporation, using 2021 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.)
SANDHILL CORPORATION
Comparative Income Statement
choose the accounting period
For the Years Ended December 31
For the Month Ended December 31
December 31
Increase or (Decrease) During 2022
2022
2021
Amount
Percentage
Net sales
$628,300
$531,300
$
enter a dollar amount
enter percentages rounded to 1 decimal place
%
Cost of goods sold
456,400
409,900
enter a dollar amount
enter percentages rounded to 1 decimal place
%
Gross Profit
171,900
121,400
enter a dollar amount
enter percentages rounded to 1 decimal place
%
Operating expenses
71,400
41,100
enter a dollar amount
enter percentages rounded to 1 decimal place
%
Net income
$ 100,500
$ 80,300
$
enter a dollar amount
enter percentages rounded to 1 decimal place
%
(b)
Prepare a vertical analysis of the income statement data for Sandhill Corporation for both years. (Round percentages to 1 decimal place, e.g. 12.1%.)
SANDHILL CORPORATION
Condensed Income Statements
choose the accounting period
For the Years Ended December 31
For the Month Ended December 31
December 31
2022
2021
$
Percent
$
Percent
Net sales
$628,300
enter percentages rounded to 1 decimal place
%
$531,300
enter percentages rounded to 1 decimal place
%
Cost of goods sold
456,400
enter percentages rounded to 1 decimal place
%
409,900
enter percentages rounded to 1 decimal place
%
Gross Profit
171,900
enter percentages rounded to 1 decimal place
%
121,400
enter percentages rounded to 1 decimal place
%
Operating expenses
71,400
enter percentages rounded to 1 decimal place
%
41,100
enter percentages rounded to 1 decimal place
%
Net income
$ 100,500
enter percentages rounded to 1 decimal place
%
$ 80,300
enter percentages rounded to 1 decimal place
%
Tags: gross profit net income Net Sales operating expenses good sold
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