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- CT10.4.PNG d Collechinger Co. and Home Depot are two home improvement retailers Compared to Hechinger, founded in the early 1900s. Tome Depot is a

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- CT10.4.PNG d Collechinger Co. and Home Depot are two home improvement retailers Compared to Hechinger, founded in the early 1900s. Tome Depot is a relative newcomer. But in recent years, while Home Impot was reporting large increase in net income. Hechinger was toporting increasingly large not losses. Finally, largely due to competition from Home Depot. Hechinger was forced to file for bankruptcy. Here are financial data for both companies in million). Hechinger Home Depot Cash 51 $ 62 Receivables 0 469 Total current assets 1.153 1.933 Beginning totalt 1,068 11,229 Ending total assets 1.57% 13.405 Beginning current liabilities 925 2456 Ending current liabilities 938 1,857 Beginning total liabilities 1.392 4.015 Ending total liabilities 1.339 4.716 Interest expense 07 37 Income tax expense 10:00 Cash provided (used) by operations 1.917 Net income (93) Net sales 3.444 30,210 Instructions Using the data provided, perform the following analysis, a. Calelate working capital and the current ratio for each company. Discuss their relative liquidity. b. Calquinto the debt to assets ratio and times interest earned for each company, Discuss their relative solvency Calculate the return on assets and profit margin for each company. Comment on their relative profitability (257) 1,014

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