financial position and operatingP2-7B Selected financial data of two competitors, Home Depot and Lowe's, are presented Compute ratios and cohere. (All dollars are in millions.) Suppose the data were taken from the 2014 financialstatements of each company.liquidity, solvency, andability for two compan:(LO 2, 4, 5), APHome DepotLowe'sIncome Statement Data for Year$77,34951,352$48,28331,55612,022239Net salesCost of goods soldSelling and administrative expensesInterest expenseOther income18,5706967445Income taxes2,4101,702Net income$ 4,395$ 2,809chapter 2 A Further Look at Financial StatementsHome DepotLowe'sBalance Sheet Data (End of Year)$14,67429,650$ 8,68622,183Current assetsNoncurrent assetsTotal assets$44,324$30,869$ 7,751$12,70613,90417,714Current liabilitiesLong-term liabilitiesTotal stockholders' equityTotal liabilities and stockholders' equity7,02016,098$44,324$30,869Net cash provided by operating activitiesCash paid for capital expendituresDividends paid$5,727$3,558$1,709$4,347$4,010$428Average shares outstanding1,8491,481InstructionsFor each company, compute these values and ratios.(a) Working capital.(b) Current ratio. (Round to two decimal places.)(c) Debt to assets ratio.(d) Free cash flow.(e) Earnings per share.(f)Compare the liquidity, profitability, and solvency of the two companies.

Ratio analysis is a technique through which stakeholders like, investors, customers and shareholders…

Home Depot Lowe's Balance Sheet Data (End of Year) $ 8,686 22,183 Current assets $14,674 Noncurrent assets 29,650 Total assets $44,324 $30,869 $ 7,751 7,020 16,098 Current liabilities Long-term liabilities Total stockholders' equity $12,706 13,904 17,714 Total liabilities and stockholders' equity $44,324 $30,869 Net cash provided by operating activities Cash paid for capital expenditures Dividends paid $5,727 $3,558 $1,709 $4,347 $4,010 $428 Average shares outstanding 1,849 1,481 Instructions For each company, compute these values and ratios. (a) Working capital. (b) Current ratio. (Round to two decimal places.) (c) Debt to assets ratio. (d) Free cash flow. (e) Earnings per share. -Compare the liguidity, profitability, and solvency of the two companies.

Home Depot Lowe's Balance Sheet Data (End of Year) $ 8,686 22,183 Current assets $14,674 Noncurrent assets 29,650 Total assets $44,324 $30,869 $ 7,751 7,020 16,098 Current liabilities Long-term liabilities Total stockholders' equity $12,706 13,904 17,714 Total liabilities and stockholders' equity $44,324 $30,869 Net cash provided by operating activities Cash paid for capital expenditures Dividends paid $5,727 $3,558 $1,709 $4,347 $4,010 $428 Average shares outstanding 1,849 1,481 Instructions For each company, compute these values and ratios. (a) Working capital. (b) Current ratio. (Round to two decimal places.) (c) Debt to assets ratio. (d) Free cash flow. (e) Earnings per share. -Compare the liguidity, profitability, and solvency of the two companies.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter1: Introduction To Accounting And Business

Section: Chapter Questions

Problem 2PA: Financial statements The assets and liabilities of Global Travel Agency on December 31, 20Y5, and...

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