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I just need help with question e. Thank you! P5-38. Analysis and Interpretation of Return on Investment for Competitors Balance sheets and income statements for

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P5-38. 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. LO2, 3 The Home Depot, Inc. NYSE - HD Lowe's Companies, Inc. NYSE: LOW Come Tetumon equity (ROL). return on asets (ROA). and return facial leve Disce the ROAS Compted to probe margin (PM) and asset tume CAT Compute the spot margin GPM) and operating expense-o-sales as for each zing and interpreting Financial State HOME DEPOT, INC. LOWE'S COMPANIES Balance Sheets Balance Sheets 2014 2013 2014 2013 $ 1,929 $ $ 1,723 466 125 $ 391 185 1,484 11.079 1,016 15,302 22.720 1,353 1,398 11.057 895 15 279 23,348 1.289 8.911 578 10,080 20.034 9,127 588 10.296 20.834 279 1323 571 $39.946 354 1.359 $31,827 602 $40,518 $32.732 i$ millions) Assets Cash and cash equivalents Short-term investments Receivables, net. Merchandise inventories Other current assets Total current assets Property and equipment, net Goodwill... Long-term investments Other assets. Total assets Liabilities and shareholders' equity Short-term debt and current maturities of long-term debt Accounts payable Accrued compensation and related expenses. Deferred revenue Income taxes payable Other current liabilities Total current liabilities Long-term debt, excluding current maturities Deferred income taxes Other long-term liabilities Total abilities. Total stockholders' equity $ 552 5,124 773 979 $ 435 5.008 785 B92 $ 328 5,807 1,391 1,468 35 2.240 11.269 16,869 $ 33 5.797 1.428 1,337 12 2.142 10.749 14,691 514 2.042 27.996 12.522 1.920 9,348 10,815 97 1.599 21.859 9.968 1,756 8.878 10.086 291 1,626 20.879 11 853 PS 1,844 30,624 9.322 Total abilities and shareholders' equity. $39,946 $40,518 $31,827 $32.732 HOME DEPOT, INC. LOWES COMPANIES Income Statements Income Statements 2014 2013 2014 2013 $53.417 18.478 (5 millions) Net sales Cost of sales Gross profit. Selling general and administrative Depreciation and amortization Operating income Investment and other income Interest expense Earnings before income to Provision for income $83,178 54.222 28.954 16,834 1,651 10.469 337 830 $78,812 51.422 27.390 16,597 1,627 9.166 12 711 8.467 3.082 $5.35 $56.223 38,665 19.558 13.281 1.485 4.792 6 12. 2 522 9.976 3.631 $5.345 4.276 1.578 $ 2.698 REQUIRED ROFL) for cach company in 2014 neels. Which of these factors drives ROA for each company pomy. How do these companies' profitability measures compare Chapter 5 Analyzing and Interpreting Financial S d. Compute the account sureveable purno Per Carto inventory turnover (Norma and properties plant, and equipment turnover (PPET) for each company. How do these companies' turnover Compare and evaluate these competitors' performance in 2014. measures compare

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