Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following information relates to Home Depot, Inc., and Lowe's Companies, Inc. for their 2018 and 2017 fiscal years. HOME DEPOT, INC. Selected Financial Information

The following information relates to Home Depot, Inc., and Lowe's Companies, Inc. for their 2018 and 2017 fiscal years.

HOME DEPOT, INC.
Selected Financial Information
(amounts in millions, except per share amounts)
January 28, 2018 January 29, 2017
Total current assets $ 18,933 $ 17,724
Merchandise inventory 12,748 12,549
Property and equipment, net of depreciation 22,075 21,914
Total assets 44,529 42,966
Total current liabilities 16,194 14,133
Total long-term liabilities 26,881 24,500
Total liabilities 43,075 38,633
Total shareholders equity 1,454 4,333
Revenue 100,904 94,595
Cost of goods sold 66,548 62,282
Gross profit 34,356 32,313
Operating income 14,681 13,427
Earnings from continuing operations before income tax expense 13,698 12,491
Income tax expense 5,068 4,534
Net earnings 8,630 7,957
Basic earnings per share $ 7.33 $ 6.47

LOWE'S COMPANIES, INC.
Selected Financial Information
(amounts in millions except per share data)
January 24, 2018 January 25, 2017
Total current assets $ 12,000 $ 10,561
Merchandise inventory 10,458 9,458
Property and equipment, net of depreciation 19,949 19,577
Total assets 34,408 31,266
Total current liabilities 11,974 10,492
Total long-term liabilities 16,000 13,120
Total liabilities 27,974 23,612
Total stockholders equity 6,434 7,654
Revenues 65,017 59,074
Cost of goods sold 42,553 38,504
Gross profit 22,464 20,570
Operating income 5,846 4,971
Earnings from continuing operations before income taxes 5,201 4,419
Income tax expense 2,108 1,873
Net earnings 3,093 2,546
Basic earnings per share $ 3.48 $ 2.73

Required

Compute the following ratios for the companies 2018 fiscal years (years ending in January 2018): (Use 365 days in a year. Do not round intermediate calculations. Round "Current ratio" to 2 decimal places and "Average days" to nearest whole number. Round all other answers to 1 decimal place.)

image text in transcribed

$ 2.73 Required Compute the following ratios for the companies' 2018 fiscal years (years ending in January 2018): (Use 3 round intermediate calculations. Round "Current ratio" to 2 decimal places and "Average days" to nea all other answers to 1 decimal place.) HOME DEPOT LOWE'S days days (1) Current ratio (2) Average days to sell inventory (Use average inventory.) (3) Debt-to-assets ratio Return on investment (Use average assets and use "earings from continuing operations" rather than net earnings.") (5) Gross margin percentage (6) Asset turnover (Use average assets) Return on sales (Use "earnings from continuing operations" rather than net earnings.) (8) Plant assets to long-term debt ratio

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Virtual Remote Audit From Planning To Implementation

Authors: Roland Scherb

2nd Edition

3754301667, 978-3754301661

More Books

Students also viewed these Accounting questions