Question
The Craft Bin, a major competitor of The Building Store in the home improvement business, operates over 1,600 stores. Craft Bin recently reported the following
The Craft Bin, a major competitor of The Building Store in the home improvement business, operates over 1,600 stores. Craft Bin recently reported the following balance sheet data (in millions): Year 2 Year 1 Total assets $41,356 $34,532 Total liabilities 21,756 16,732 a. Determine the total stockholders' equity at the end of Years 2 and 1. Year 2 $fill in the blank 1million Year 1 $fill in the blank 2million b. Determine the ratio of liabilities to stockholders' equity for Year 2 and Year 1. Round your answers to two decimal places. Year 2 fill in the blank 3 Year 1 fill in the blank 4 c. Based on (b), which is true regarding the risk to the creditors? d. The Building Store, Inc., is the world's largest home improvement retailer and one of the largest retailers in the United States based on net sales volume. The Building Store operates over 2,200 Building stores that sell a wide assortment of building materials and home improvement and lawn and garden products. The Building Store reported the following balance sheet data (in millions) Year 2 Year 1 Total assets $35,820 $30,770 Total stockholders' equity 19,900 18,100 For Year 2, the creditors of which company are more at risk?k
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