Bundle: Financial & Managerial Accounting, 14th + Working Papers for Warren/Reeve/Duchac's Corporate Financial Accounting, 14th + Working Papers, ... & Managerial Accounting, 14th + CengageNOWv2,
14th Edition
ISBN: 9781337804011
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 1, Problem 2ADM
Home Depot: Ratio of liabilities to stockholders' equity
The Home Depot, Inc., is the world’s largest home improvement retailer and one of the largest retailers in the United States based on sales volume. Home Depot operates over 2,200 stores that sell a wide assortment of building, home improvement, and lawn and garden items. Home Depot recently reported the following end-of-year balance sheet data (in millions):
| Year 3 | Year 2 | Year 1 | |
| Total assets | $40,518 | $41,804 | $40,518 |
| Total stockholders’ equity | 12,522 | 17,777 | 17,898 |
- A. Determine the total liabilities at the end of Years 1, 2, and 3.
- B. Compute the ratio of liabilities to stockholders’ equity for all three years. (Round to two decimal places.)
- C. What conclusions regarding the margin of protection to creditors can you draw from the trend in this ratio for the three years?
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a. Determine the total stockholders' equity at the end of Years 2 and 1.
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Year 1
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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…
Chapter 1 Solutions
Bundle: Financial & Managerial Accounting, 14th + Working Papers for Warren/Reeve/Duchac's Corporate Financial Accounting, 14th + Working Papers, ... & Managerial Accounting, 14th + CengageNOWv2,
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