The Home Depot, Inc., is the worlds largest home improvement retailer and one of the largest retailers

Question:

The Home Depot, 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 Home Depot operates over 2,000 Home Depot® stores that sell a wide assortment of building materials and home improvement and lawn and garden products. The Home Depot reported the following data (in millions):

a. Determine the total liabilities as of February 1, 2009, and February 3, 2008.
b. Determine the ratio of liabilities to stockholders€™ equity for 2009 and 2008. Round to two decimal places.
c. What conclusions regarding the margin of protection to the creditors can you draw from(b)?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...