Refer to the financial statements of The Home Depot in Appendix A and Lowes in Appendix B
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1. Calculate and express as a percentage, the companies’ debt-to-assets ratios using amounts reported in the financial statements for the year ending in early 2014. What do the differences in this ratio suggest about the companies’ reliance on creditors? Does it appear that Lowe’s or The Home Depot has a riskier financing strategy?
2. Calculate, to two decimal places, the companies’ times interest earned ratios for the years ending in early 2014. Does it appear that Lowe’s or The Home Depot will be better able to meet future interest obligations as they become payable? 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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Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
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