Homework (II)

College of Business and Economics Department of Accounting and Finance Intermediate Accounting (I)-
ACCT235
FALL 2020

Dr. Tariq Elrazaz

Assistant Professor in Accounting

Student Name:                                                                                                                     
Student Registration Number:                                                                                          

 Note: This homework assignment counts towards 10% of your overall course grade.
According to the course outline the overall course consists of 2 pieces of homework
assignment. Each assignment counts towards 10% of the overall course grade for a
combined grade of 20% for all homework assignments.
 Due date: You will submit the homework answers via email in a word document on or
before Monday 30/11/2020.

Selected financial data of Target (USA) and Wal‐Mart Stores, Inc. (USA) for a recent year
are presented below (in millions).
Requirement:
(a) For each company, compute the following ratios:
1. Current ratio.
2. Accounts receivable turnover. (in times and days)
3. Inventory turnover. (in times and days)
4. Profit margin.
5. Asset turnover.
6. Return on assets.
7. Return on ordinary shareholders' equity.
8. Debt to assets ratio.
9. Times interest earned.

(b) Compare the liquidity, profitability, and solvency of the two companies.
diate Accounting (I)-

year