EX 1-27 Ratio of liabilities to stockholders'equity OBJ.6 Lowe's Companies Inc., a major competitor of The Home Depot in the home improve- ment business, operates over 1,800 stores. Lowe's recently reported the following balance sheet data (in millions): Year 2 Year 1 Total assets $35,291 $34,408 Total liabilities 29,418 27,974 a. Determine the total stockholders' equity at the end of Years 2 and 1. b. Determine the ratio of liabilities to stockholders' equity for Year 2 and Year 1. Round to two decimal places. c. What conclusions regarding the risk to the creditors can you draw from (b)? d. Using the balance sheet data for The Home Depot in Exercise 1-26, how does the ratio of liabilities to stockholders' equity of Lowe's compare to that of The Home Depot? OBJ.6 EX 1-26 Ratio of liabilities to stockholders' equity The Home Depot is the world's largest home improvement retailer and one of the largest retailers in the United States based on net sales volume. The Home Depot operates over 2,200 Home Depot stores that sell a wide assortment of building materials and home improvement and lawn and garden products. The Home Depot recently reported the following balance sheet data (in millions): Year 2 Year 1 Total assets $44,529 $42,966 Total stockholders' equity 1,454 4,333 a. Determine the total liabilities at the end of Years 2 and 1. b. Determine the ratio of liabilities to stockholders' equity for Year 2 and Year 1. Round to two decimal places. What conclusions regarding the margin of protection to the creditors can you draw from (b)? c