The Home Depot reported the following data (in millions) in its financial statements for 2005 and 2004:

Question:

The Home Depot reported the following data (in millions) in its financial statements for
2005 and 2004:

The Home Depot reported the following data (in millions) in its financial

a. Determine the ratio of net sales to average total assets for The Home Depot for 2005 and 2004. Round to two decimal places.
b. What conclusions can be drawn from these ratios concerning the trend in the ability of The Home Depot to effectively use its assets to generatesales?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Accounting

ISBN: 978-0324401844

22nd Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

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