/basic-financials-quiz WMT TGT

Skill_Version: 1.0 Student: diana Model: deepseek-v4-flash-free Date: 2026-06-24

AI: I’ve pulled up Walmart FY2025 (Discount Store) vs. Target FY2025 (Discount Store). We’re going to work through some questions on basic financials. I’ll ask one question at a time — take your time, and just reply with a single letter if you want to keep it short. Let’s start!


Q1: What does the acronym SG&A stand for?

    1. Sales, Goods, and Administration
    1. Selling, General, and Administrative expenses
    1. Supply, Gross margin, and Accounting
    1. Standard Gross & Allowances

User: b

AI: Correct! SG&A stands for Selling, General, and Administrative expenses — things like marketing, salaries, rent, and corporate overhead. Not part of COGS.


Q2: What is Walmart’s Net Revenue for FY2025?

    1. $535,395,000
    1. $177,768,000
    1. $713,163,000
    1. $284,668,000

User: b

AI: Not quite. $177,768,000 is Walmart’s Gross Margin, not its Revenue. Net Revenue is the top line — the very first number in the Income Statement table.

    1. That’s Cost of Goods sold
    1. That’s Gross Margin (Revenue minus COGS)
    1. ✓ $713,163,000 — that’s the correct Net Revenue
    1. That’s Total Assets

The answer was c). Revenue is always the first row in the income statement.


Q3: Which company has a higher Gross Margin %? (You’ll need to calculate it: Gross Margin ÷ Net Revenue × 100)

    1. Walmart
    1. Target
    1. They are equal
    1. Cannot be determined

User: exit the skill

AI: No problem! Here’s a recap:

  • Walmart Gross Margin %: ~24.9%
  • Target Gross Margin %: ~27.9%

Target has the higher Gross Margin %, which makes sense — Walmart competes more on everyday low prices with thinner margins.

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