Here are the comparative income statements of Crane Corporation.

**CRANE CORPORATION****Comparative Income Statement****For the Years Ended December 3120222021**Net sales$ 640,900$ 570,000Cost of goods sold 434,700 405,900Gross Profit 206,200 164,100Operating expenses 77,800 41,200Net income$ 128,400$ 122,900

**(a)**

Prepare a horizontal analysis of the income statement data for Crane 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%.)**

**CRANE CORPORATION****Comparative Income Statement****choose the accounting period**

**Increase or (Decrease) During 202220222021AmountPercentage**Net sales$ 640,900$ 570,000$ enter a dollar amount enter percentages rounded to 1 decimal place %Cost of goods sold 434,700 405,900 enter a dollar amount enter percentages rounded to 1 decimal place %Gross Profit 206,200 164,100 enter a dollar amount enter percentages rounded to 1 decimal place %Operating expenses 77,800 41,200 enter a dollar amount enter percentages rounded to 1 decimal place %Net income$ 128,400$ 122,900$ enter a dollar amount enter percentages rounded to 1 decimal place %

**(b)**

Prepare a vertical analysis of the income statement data for Crane Corporation for both years. **(Round percentages to 1 decimal place, e.g. 12.1%.)**

**CRANE CORPORATION****Condensed Income Statements****choose the accounting period**

**2022**

**2021**

**$**

**Percent**

**$**

**Percent**

Net sales

$ 640,900

enter percentages rounded to 1 decimal place

%

$ 570,000

enter percentages rounded to 1 decimal place

%

Cost of goods sold

434,700

enter percentages rounded to 1 decimal place

%

405,900

enter percentages rounded to 1 decimal place

%

Gross Profit

206,200

enter percentages rounded to 1 decimal place

%

164,100

enter percentages rounded to 1 decimal place

%

Operating expenses

77,800

enter percentages rounded to 1 decimal place

%

41,200

enter percentages rounded to 1 decimal place

%

Net income

$ 128,400

enter percentages rounded to 1 decimal place

%

$ 122,900

enter percentages rounded to 1 decimal place

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

**Target****CorporationWal-Mart****Stores, Inc.Income Statement Data for Year**Net sales$65,600$418,000Cost of goods sold45,000310,000Selling and administrative expenses14,30075,000Interest expense7202,200Other income (expense)(90)(380)Income tax expense1,400 6,900 Net income$ 4,090 $ 23,520 **Balance Sheet Data**** (End of Year)**Current assets$18,000$47,000Noncurrent assets26,100 121,000 Total assets$44,100 $168,000 Current liabilities$10,000$55,000Long-term debt18,30043,000Total stockholders’ equity15,800 70,000 Total liabilities and stockholders’ equity$44,100 $168,000 **Beginning-of-Year Balances**Total assets$44,000$165,000Total stockholders’ equity13,20066,000Current liabilities10,80054,000Total liabilities30,80099,000**Other Data**Average net accounts receivable$7,900$4,100Average inventory7,10034,100Net cash provided by operating activities5,70025,900Capital expenditures1,60011,500Dividends5204,200

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%.)**

**RatioTargetWal-Mart(1)**Current ratioenter the current ratio :1enter the current ratio :1**(2)**Accounts receivable turnoverenter accounts receivable turnover in times timesenter accounts receivable turnover in times times**(3)**Average collection periodenter average collection period in days daysenter average collection period in days days**(4)**Inventory turnoverenter inventory turnover in times timesenter inventory turnover in times times**(5)**Days in inventoryenter days in inventory ratio daysenter days in inventory ratio days**(6)**Profit marginenter percentages %enter percentages %**(7)**Asset turnoverenter asset turnover in times timesenter asset turnover in times times**(8)**Return on assetsenter percentages %enter percentages %**(9)**Return on common stockholders’ equityenter percentages %enter percentages %**(10)**Debt to assets ratioenter percentages %enter percentages %**(11)**Times interest earnedenter times interest earned timesenter times interest earned times**(12)**Free cash flow$enter a dollar amount $enter a dollar amount