Refer to the financial statements of The Home Depot in Appendix A at the end of this book.

Required:

1. Calculate and express as a percentage the company’s debt-to-assets ratio using amounts reported in its financial statements for the years ended January 29, 2017, and January 31,
2016, respectively.

a. 89.9 and 85.0 percent
b. 79.7 and 76.0 percent
c. 36.6 and 35.1 percent
d. 41.3 and 39.3 percent

2. Using the company’s interest expense, calculate the times interest earned ratio to two decimal places for the year ended January 29, 2017.

a. 1.69
b. 1.75
c. 8.19
d. 13.85