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

Question:

Lowe's Companies, Inc., a major competitor to The Home Depot in the home improvement retail business, operates over 1,800 stores. Lowe's recently reported the following end of- year data (in millions):

A. Determine the total stockholders' equity 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?
D. Using the balance sheet data for Home Depot in ADM-2, how does Lowe's ratio of liabilities to stockholders' equity compare to that of 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...