COMPARISON WALMART AND TARGET - 1469 Words

The annual reports of Wal-Mart and Target are provided free of charge via walmart.com and target.com. Upon inspection, the Wal-Mart and target reports include meaningful financial statements, including the Statement of Owners Equity, Income Statement, and Balance Sheet. These statements were obtained through 10-K statements available on walmart.com and target.com. In comparing the statements of these companies, Wal-Mart and Target both provide multi-step Statements of Operations, which include the current and previous 2 years financial information. Selected Data from Statement of Operations (Dollars in Millions) Wal-Mart (2002) Wal-Mart (2001) Wal-Mart (2002) Wal-Mart (2001) Sales$5,269.3$4,870.3$3,486.1$3,387.9 Gross†¦show more content†¦Legal settlements, property and equipment, income tax and commitments are also noted. Wal-Mart notes to financial statements state that merchandise inventories are stated at lower cost or market using the retail inventory method on the FIFO basis for 82% of the companys inventory. GameStop inventory (or remaining %) is recorded at average cost, and valued on the LIFO method. Target states that if all inventories valued at LIFO costs were valued at current costs, inventories would remain unchanged. Depreciation is calculated using the straight-line method over the useful life of the asset, while different methods are used for tax purposes. Wal-Mart records all short-term instruments with original maturity dates of 3 months or less as cash equivalents. Revenues are recognized at the time of sale, and sales returns are recognized at the time of return. Additional notes to financial statements are numerous, and include a disclosure of stock option plans, pension and retirement plans, acquisitions, and leasing agreements. Advertising, legal and subscription service revenue s are also discussed. To provide a detailed comparison of Wal-Mart and Target, ratios were calculated in the following areas: Liquidity, Profitability, Long-Term Solvency, Cash Flow Adequacy, and Market Strength. The results of these calculations are shown on the following page. Liquidity Ratios (2002-2001)Target (2002-2001) Wal-Mart Working Capital ($ millions)Show MoreRelatedTarget Strategic Audit Essay15491 Words   |  62 Pagesï » ¿ TARGET CORPORATION STRATEGIC AUDIT MGMT 7160 Fall 2013 Executive Summary This report examines Target Corporation’s performance in a detailed strategic audit. The audit includes an external, internal and strategic analysis as well as a recommended course of action. 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