question 2

QUESTION 2 Calculate the following ratios for LOWE's Company Profitability Ratios (1) Net Profit Margin (2) Gross Profit Percentage (3) Fixed Asset Turnover (4) Return on Equity (ROE) (5) Earnings per Share (EPS) (6) Price/Earnings Ratio Liquidity Ratios (7) Receivables Turnover (8) Inventory Turnover (9) Days to Sell (10) Current Ratio (11)Solvency Ratios (12) Debt-to-Assets (13)Times Interest EarnedLOWE'S Balance Sheets (in millions) Fiscal 2013 Fiscal 2012 Amount Percent Amount Percent Assets Current Assets Cash $ 391 1.2% $ 541 1.7% Short-term Investments 185 0.6 125 0.4 Inventory 9.127 27.9 8,600 26.3 Other Current Assets 593 1.8 518 1.6 Property and Equipment, Net 20.834 63.6 21,477 65.7 Other Assets 1,602 4.9 1,405 4.3 Total Assets $32,732 100.0%% $32.666 100.0% Liabilities and Stockholders' Equity Current Liabilities $ 8,876 27.1% $ 7,708 23.6% Long-term Liabilities 12,003 36.7 11,101 34.0 Total Liabilities 20.879 63.8 18,809 57.6 Stockholders' Equity 11,853 36.2 13,857 42.4 Total Liabilities and Stockholders' Equity $32,732 100.0% 532,666 100.0% LOWE'S Income Statements (in millions) Fiscal 2013 Fiscal 2012 Amount Percent Amount Percent Net Sales Revenue $53.417 100.0% $50,521 100.0% Cost of Sales 34,941 65.4 33,194 65.7 Gross Profit 18,476 34.6 17,327 34.3 Operating and Other Expenses 14,327 26.8 13,767 27.3 Interest Expense 476 0.9 423 0.8 Income Tax Expense 1,387 2.6 1,178 2.3 Net Income $ 2,286 4.3% $ 1,959 3.9%