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Ratio of Liabilities to Stockholders' Equity The Builder's Outlet, is the world's largest home improvement retailer and one of the largest retailers in the United
Ratio of Liabilities to Stockholders' Equity The Builder's Outlet, is the world's largest home improvement retailer and one of the largest retailers in the United States based on net sales volume. The Builder's Outlet operates over 2,200 Builder's Outlet stores that sell a wide assortment of building materials and home improvement and lawn and garden products. Builder's Outlet reported the following balance sheet data (in millions): Year 2 Year 1 Total assets $43,255 $73,416 Total stockholders' equity 21,100 22,800 a. Determine the total liabilities at the end of Years 2 and 1. Year 2 Year 1 million million $ b. Determine the ratio of liabilities to stockholders' equity for Year 2 and Year 1. Round your answers to two decimal places. Year 2 Year 1 c. The ratio of liabilities to stockholders' equity indicating a risk for creditors from Year 1 to Year 2
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