The Home Depot reported the following data (in millions) in its recent financial statements: Year 2 Year

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The Home Depot reported the following data (in millions) in its recent financial statements:
                                                                          Year 2                  Year 1  
                   Total sales                                      $83,176               $78,812
                  Total assets:
                       Beginning of year                      40,518                 41,084
                       End of year                                39,946                 40,518

A. Determine the asset turnover ratio for Home Depot for Year 2 and Year 1. (Round to two
   decimal places).
B. What conclusions can be drawn from these ratios concerning the trend in the ability of            Home Depot to effectively use its assets to generate sales?

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Financial And Managerial Accounting

ISBN: 9781337119207

14th Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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