Lowes Companies Inc , a major competitor of The Home Depot in the home improvement business, operates over 1,700 stores Lowes recently reported the following balance sheet data (in millions) a Determine the total stockholders equity as of at the end of Years 2 and 1 b Determine the ratio of liabili...

a Year 2 18112 33699 15587 Year 1 19069 33005 13936 b Y ...

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

Question:

Lowe€™s Companies Inc., a major competitor of The Home Depot in the home improvement business, operates over 1,700 stores. Lowe€™s recently reported the following data (in millions):

a. Determine the total stockholders€™ equity as of at the end of Years 2 and 1.
b. Determine the ratio of liabilities to stockholders€™ equity for Year 2 and Year 1. Round to two decimal places.
c. What conclusions regarding the risk to the creditors can you draw from (b)?
d. Using the balance sheet data for The Home Depot in Exercise 1-26, 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...