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o 1.153 Collechinger Co. and Home Depot are two home improvement retailers. Compared to Hechinger, founded in the early 1900, Home Depot in a relative

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o 1.153 Collechinger Co. and Home Depot are two home improvement retailers. Compared to Hechinger, founded in the early 1900, Home Depot in a relative newcome. But in recent years, while Home Depot was reporting large increases in net income. Hechinger was reporting increasingly large net losses. Finally, largely due to competition from Home Depot Hechinge was forced to file for bankruptcy. Here are financial data for both companies (in million). Hechinger Home Depot Cash 21 $ Receivables 400 Total eurrent Assets 4.933 Beginning totale 1.668 11,239 Ending total assets 1.577 13.465 Beginning current liabilities was 1,456 Ending current liabilities 938 2,857 Beginning total limbile 1.392 4.015 Ending total liabilities 13139 4.716 Interest expense 67 37 Income tax expense 3 1,040 Cash provided (used) by operations (257) 1.917 Net income (93) 1,614 Net sales 3.444 30,219 Instructions Using the data provided, perform the following analysis. a. Calculate working expital and the current ratio for each company. Descuss their relative liquidity, b. Calculate 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

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