Analysis and Interpretation of Return on Investment for Competitors Balance sheets and income statements for The Home Depot, Inc., and Lowe's Companies, Inc., follow. Refer to these financial statements to answer the requirements. HOME DEPOT, INC. Balance Sheets LOWE'S COMPANIES Balance Sheets ($ millions) Assets Short term investments 2013 2014 2013 Receivables, net. 1484 11,057 8,911 895 10.29 10,080 20,034 Other current assets 593 Total current assets.. .. 15,302 22,720 15,279 23,348 20,834 WI Long-term investments. 354 1,359 571 602 1,323 $31,827 $32,732 Total asse Liabilities and shareholders' equity Short term debt and current maturities of long-term debt. $ 328 33552 5,797 1,428 435 5,807 5,124 Accrued compensation and related expenses Deferred revenue Income taxes payable... 2,240 1,920 2,142 10,749 4,691 2,042 27996 Long-term debt, excluding current maturities 8,876 97 10086 1,626 10,815 Deferred income taxes Other long-term liabilities.... Total liabilities. Total stockholders' equity 642 30,624 9968 20,879 11,853 21,859 9,322 12,522 $39,946 $40,518 $31,827 $32,732 HOME DEPOT, INC. Income Statements LOWE'S COMPANIES Income Statements $ millions) Net sales Cost of sales Gross profit Selling, general and administrative $83,176 54,222 S78,812 $56,223 $53,417 36,665 51,422 27,390 16,597 34,941 28,954 19,558 13,281 1,485 4,792 12,865 1,462 Operating income 10,469 337 12 480 3,673 1,387 6,345 5,385 2,698 2,286 522 9,976 3,631 8,467 4,276 1,578 Provision for income taxes Net earnings. REQUIRED a. Compute return on equity (ROE), return on assets (ROA), and return on financial leverage (ROFL) for each company in 2014 b. Disaggregate the ROA's computed into profit margin (PM) and asset turnover (AT) compo- c. Compute the gross profit margin (GPM) and operating expense-to-sales ratios for each com d. Compute the accounts reccivable turnover (ART), inventory turnover NVTd property nents. Which of these factors drives ROA for each company? y. How do these companies' profitability measures compare plant, and equipment turnover (PPET for each company. How do these companies turnover