Consolidated Balance Sheets $ in Millions Classification 2016 2015

Current assets:

Cash and cash equivalents FA $ 558 $ 405

Short-term investments FA 100 307

Merchandise inventory - net OA 10,458 9,458

Other current assets OA 884 391

Total current assets 12,000 10,561

Property, less accumulated depreciation OA 19,949 19,577

Long-term investments OA 366 222

Deferred income taxes - net OA 222 241

Goodwill OA 1,082 154

Other assets OA 789 511

Total assets 34,408 31,266

Current liabilities:

Short-term borrowings FL 510 43

Current maturities of long-term debt FL 795 1,061

Accounts payable OL 6,651 5,633

Accrued compensation and employee benefits OL 790 820

Deferred revenue OL 1,253 1,078

Other current liabilities OL 1,975 1,857

Total current liabilities 11,974 10,492

Long-term debt, excluding current maturities FL 14,394 11,545

Deferred revenue - extended protection plans OL 763 729

Other liabilities OL 843 846 Total liabilities 27,974 23,612

Commitments and contingencies Shareholders' equity:

Preferred stock - $5 par value, none issued 0 0

Common stock - $.50 par value; Shares issued and outstanding 866 at February 3, 2017 and 910 at January 29, 2016, respectively 433 455

Capital in excess of par value 0 0 Retained earnings 6,241 7,593

Accumulated other comprehensive loss (240) (394)

Total shareholders' equity 6,434 7,654

Total liabilities and shareholders' equity $ 34,408 $ 31,266

Reformulate financial statement and perform profitability and risk analysis for LOWES. (Use the provided Excel template to finish your work. You must submit your Excel file to show your work.)

A. Prepare reformulated income statements for fiscal year 2016 and 2015 and reformulated balance sheets for 2016 and 2015 in a way that distinguishes operating and financing activities and identifies taxes applicable to various components of income.

B. For fiscal year 2016, calculate the following: return on common equity (ROE), return on net operating assets (RNOA), and net borrowing cost (NBC). Use average balance sheet amounts in denominators.

C. Calculate the financing leverage ratio (FLEV) at the beginning of the year and show that the following leverage equation for 2016 is satisfied: ROE = RNOA + [FLEV (RNOA NBC)]

D. Calculate the net operating profit margin ratio (NOPM) and the net operating asset turnover (NOAT)

. E. Calculate the current ratios and quick ratios for 2016 and 2015

. F. Calculate the liabilities-to-equity ratios and total debt-to-equity ratios for 2016 and 2015.

G. Calculate the interest coverage ratios for 2016 and 2015.

H. Calculate the account receivable turnover ratio, inventory turnover ratio, and account payable turnover ratio for 2016.

I. Calculate the days account receivable outstanding, days inventory outstanding, days account payable outstanding, and days financing required for 2016.