LOWCompanies, a home improvement store chain reported the following summarized figures (Click the icon to view the income statement. (Click the icon to view the balance sheets) Lows has 30,000 common shares outstanding during 2024 Read the requirements Requirement 1. Compute the debt ratio and the debt to equity ratio at May 31, 2024, for Low's Companies, Begin by selecting the formula to calculate Low's Companies debt ratio. Then enter the amounts and calculate the dubt ratio for 2024. (Round the ratio :o ane tenth of a percent Debt ratio % Begin by selecting the formula to calculate Low's Companies debt to equity ratio. Then enter the amounts and calculate the debt to equity ratio for 2024. Round the ratio to two e Dobt to equity ratio Requirement 2. Is Low's ability to pay its liabilities strong or weak? Explain your reasoning (Anrumo the following industry wefagos, debt ratio: 0%, belo equity ratio:2.73) Choose from any list or enter any number in the input fields and then continue to the next question Talk to Cortana 77F wstanding during 2024 Read the requirements Begin by selecting the formula to calculate Low's Companies' debt ratio. Then enter the mounts and all the debt ratio for 2024. Round eat to one of our Debt Begin by selecting the formula to calculate Low Companied debt to equity mio Then arted the amounts and calculate the cult to y ate tor 2004 route to two Detto quity ratio Requirement 2. Is Low's ability to pay its liabilities strong or werk? Explain your reasoning (Assame the folowing industry average ott roterer221) The company's ability to pay its liabilities appears since the debt ratio is fairy Choose from any list or enter any number in and the A me Statement Low's Companies Income Statement Years Ended May 31, 2024 and 2023 2024 2023 Net Sales Revenue $ 41,000 $ Cost of Goods Sold 39,80 28,60 27,700 Interest Expense 500 280 All Other Expenses 6,200 8,400 $ 6,600 $ 2,520 Net Income Print Done - Low's Companies Balance Sheet May 31, 2024 and 2023 Assets 2024 2023 Liabilities 2024 2923 Cash S 2,300 $ 12.900 10 500 Short-term Investments Accounts Receivable Merchandise Inventory 27,000 7,300 7.300 7,000 1,900 Total Current Liabilities 22,000 $ 14,000 Long-term Liabilities 13,300 5,300 Total Liabilities 35,300 8,200 Stockholders' Equity 1,800 Common Stock 9,000 41,600 31,200 Retained Earnings 23.400 Other Current Assets 9,000 Total Current Assets 50,900 24.800 Low's Companies Balance Sheet Mau24 2024 and 22 Requirements 1. Compute the debt ratio and the debt to equity ratio at May 31, 2024, for Low's Companies. 2. Is Low's ability to pay its liabilities strong or weak? Explain your reasoning. Print Done Print Done
