The ratios computed for Home Depot in this chapter are compared with those of RONA Inc. and Canadian Tire Corporation. The comparison of ratios across these three companies assumes that they use the same accounting methods in reporting the various elements of their financial statements.

\section*{Required:}
1. Access the annual reports of the three companies through their respective websites and identify the method(s) each company uses

a. to depreciate its long-lived assets, and

b. to value its inventory at year-end.
2. Are the methods used by these companies similar or different? Explain.
3. If two of these companies use different accounting methods, what impact would the different methods have on the following ratios:

a. Profit margin

b. Return on equity

c. Current ratio

d. Debt-to-equity