EX 1-27 Ratio of liabilities to stockholders equity OBJ.6 Lowe's Companies Inc., a major competitor of The Home Depot in the home improve- ment business, operates over 1 800 stores. Lowe's recently reported the following halance sheet data (in millions) Year 2 Year 1 Total assets Total liabilities $35,291 $34,408 29,418 27,974 a. Determine the total stockholders' equity at the end of Years 2 and 1. b. Determine the ratio of liabilities to stockholders' equity for Year 2 and Year 1. Round to two decimal places. C. What conclusions regarding the risk to the creditors can you draw from (hb d. Using the balance sheet data for The Home Depot in Exercise 1-26, how does the ratio of liabilities to stockholders equity of Lowe's compare to that of The Home Depot?

EX 1-27 Ratio of liabilities to stockholders equity OBJ.6 Lowe's Companies Inc., a major competitor of The Home Depot in the home improve- ment business, operates over 1 800 stores. Lowe's recently reported the following halance sheet data (in millions) Year 2 Year 1 Total assets Total liabilities $35,291 $34,408 29,418 27,974 a. Determine the total stockholders' equity at the end of Years 2 and 1. b. Determine the ratio of liabilities to stockholders' equity for Year 2 and Year 1. Round to two decimal places. C. What conclusions regarding the risk to the creditors can you draw from (hb d. Using the balance sheet data for The Home Depot in Exercise 1-26, how does the ratio of liabilities to stockholders equity of Lowe's compare to that of The Home Depot?

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter1: Introduction To Accounting And Business

Section: Chapter Questions

Problem 1.3ADM: Lowes: Ratio of liabilities to stockholders equity Lowes Companies, Inc., a major competitor to The...

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