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eBook Ratio of Liabilities to Stockholders' Equity The Craft Bin, a major competitor of The Building Store in the home improvement business, operates over 1,600
eBook Ratio of Liabilities to Stockholders' Equity The Craft Bin, a major competitor of The Building Store in the home improvement business, operates over 1,600 stores. Craft Bin recently reported the following balance sheet data (in millions): Total assets Year 2 $24,888 Year 1 $20,757 Total liabilities 12,688 9,657 a. Determine the total stockholders' equity at the end of Years 2 and 1. Year 2 $ Year 1 million million b. Determine the ratio of liabilities to stockholders' equity for Year 2 and Year 1. Round your answers to two decimal places. Year 2 Year 1 c. Based on (b), which is true regarding the risk to the creditors? d. The Building Store, Inc., is the world's largest home improvement retailer and one of the largest retailers in the United States based on net sales volume. The Building Store operates over 2,200 Building stores that sell a wide assortment of building materials and home improvement and lawn and garden products. The Building Store reported the following balance sheet data (in millions) Year 2 Year 1 Total liabilities 12,688 9,657 a. Determine the total stockholders' equity at the end of Years 2 and 1. Year 2 million Year 1 million b. Determine the ratio of liabilities to stockholders' equity for Year 2 and Year 1. Round your answers to two decimal places. Year 2 Year 1 c. Based on (b), which is true regarding the risk to the creditors? d. The Building Store, Inc., is the world's largest home improvement retailer and one of the largest retailers in the United States based on net sales volume. The Building Store operates over 2,200 Building stores that sell a wide assortment of building materials and home Improvement and lawn and garden products. The Building Store reported the following balance sheet data (in millions) Year 2 Year 1 Total assets $22,848 $19,656 Total stockholders' equity 11,900 10,800 For Year 2, the creditors of which company are more at risk
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