Lowes, a major competitor of The Home Depot in the home improvement business, operates over 700 stores.

Question:

Lowe€™s, a major competitor of The Home Depot in the home improvement business, operates over 700 stores. For the years ending January 31, 2003, and February 1, 2002, Lowe€™s reported the following data (in millions):

a. Determine the total stockholders€™ equity as of January 31, 2003, and February 1, 2002.
b. Determine the ratio of liabilities to stockholders€™ equity for 2003 and 2002. Round to two decimal places.
c. What conclusions regarding the margin of protection to the creditors can you draw from (b)?
d. How does the ratio of liabilities to stockholders€™ equity of Lowe€™s compare to that of The HomeDepot?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...