1. Compare the ratio of liabilities to total assets for Lowes (see the chapter illustration on page...

1. Compare the ratio of liabilities to total assets for Lowe’s (see the chapter illustration on page 306) and The Home Depot (FA 8-1). Comment on any differences.

2. Compare the price-earnings ratios of Lowe’s (see the chapter illustration on pages 306–307) and The Home Depot (FA 8-1). Comment on any differences.

In FA 8-1, The Home Depot, Inc. operates over 2,200 home improvement retail stores and is a competitor of Lowe’s. The following data (in millions) were adapted from a recent financial statement of The HomeDepot.

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Year 2 Year 1 Total assets Total liabilities Total stockholders' equity Earnings per share $40,518 22,620 17,898 2.49 $40,125 21,236 18,889 2.03