P2-50. Compare Cash Flows Across Retailers Following are selected accounts from the income statement and the statement of cash flows for several retailers, for their fiscal years ended in 2018. Cash...

Extracted text: P2-50. Compare Cash Flows Across Retailers Following are selected accounts from the income statement and the statement of cash flows for several retailers, for their fiscal years ended in 2018. Cash Flows from Net $ millions Sales Income Operating Investing Financing Macy's..... Home Depot Best Buy. Target..... Walmart Stores..... $ 25,739 $ 1,108 108,203 11,121 42,879 $ (1,544) (12,420) (2,018) (3,644) (2,537) $ 1,735 13,038 $ ( 456) (2,416) 1,464 2,937 2,408 5,973 508 .... 75,356 511,729 (3,416) (24,036) 6,670 27,753 Required a. Compute the ratio of net income to sales for each company. Rank the companies on the basis of this ratio. Do their respective business models give insight into these differences? b. Compute net cash flows from operating activities as a percentage of sales. Rank the companies on the basis of this ratio. Does this ranking coincide with the ratio rankings from part a? Suggest one or more reasons for any differences observed. c. Compute net cash flows from investing activities as a percentage of sales. Rank the companies on the basis of this ratio. Does this ranking coincide with the ratio rankings from part a? Suggest one or more reasons for any differences observed.