Selected financial data of two competitors, Home Depot and Lowes, are presented here. (All dollars are in

Selected financial data of two competitors, Home Depot and Lowe’s, are presented here. (All dollars are in millions.) Suppose the data were taken from the 2014 financial statements of each company.

Instructions
For each company, compute these values and ratios.
(a) Working capital.
(b) Current ratio. (Round to two decimal places.)
(c) Debt to assets ratio.
(d) Free cash flow.
(e) Earnings per share.
(f) Compare the liquidity, profitability, and solvency of the twocompanies.

Transcribed Image Text:

Home Depot Income Statement Data for Year Lowe's Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income Income taxes Net income $77,349 51,352 18,570 696 $48,283 31,556 12,022 239 45 1,702 2,410 4,395 $ 2,809 Home Depot Balance Sheet Data (End of Year Lowe's Current assets Noncurrent asset:s Total assets $14,674 29,650 44,324 $ 8,686 22,183 30,869 Current liabilities Long-term liabilities Total stockholders' equity Total liabilities and stockholders' equity $12,706 13,904 17,714 $44,324 7,751 7,020 16,098 $30,869 Net cash provided by operating activities Cash paid for capital expenditures Dividends paid S5,727 $3,558 $1,709 $4,347 $4,010 $428 Averag e shares outstanding 1,849 1,481