Lowe 's Companies Inc , a major competitor of The Home Depot in the home improvement business, operates over 1,700 stores Lowe 's recently reported the following balance sheet data (in millions) Year 2 Year 1 Total assets $33,559 $33,699 Total liabilities 17,026 15,587 a Determine the total stockho...

a Year2 16533 3355917026 Year1 18112 3369915587 b Year2 103 1702616533 Year1 086 1558718112 ...

Lowe's Companies Inc., a major competitor of The Home Depot in the home improvement business, operates over

Question:

Lowe's Companies Inc., a major competitor of The Home Depot in the home improvement business, operates over 1,700 stores. Lowe's recently reported the following data (in millions):
Year 2................Year 1
Total assets................$33,559.............$33,699
Total liabilities..............17,026...............15,587
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 (b)?
d. Using the 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?
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...