Refer to the 2013 financial statements and notes of The Home Depot, Inc. and Lowes Companies, Inc. Note that The Home Depots fiscal 2013 year end is February 2, 2014 and Lowes fiscal 2013 year end is January 31, 2014.

Q: Prepare common-sized income statements and balance sheets for each company for fiscal 2013 and 2012. To common size the income statement, divide each item by net sales for that year. To common size the balance sheet, divide each item by total assets at the end of that year. Comment on the similarities and differences in balance sheet composition of the two companies noted from the common-size balance sheets. Note: analysis of the common-size income statement will be conducted in part e.