Lowes Companies, Inc. (LOW), a major competitor to The Home Depot, Inc. (HD) in the home improvement

Question:

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

Year 3 Year 1 Year 2 $32,732 20,879 11,853 Total assets Total liabilities Total stockholders' equity $31,266 23,612 7,65

a. Compute the ratio of liabilities to stockholders€™ equity for all three years. Round to two decimal places.
b. What conclusions regarding the margin of protection to creditors can you draw from the trend in this ratio for the three years?

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...

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a b The ratio of liabilities to stockholders equity for Lowes increas...View the full answer

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Corporate Financial Accounting

ISBN: 9781337398169

15th Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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Question Posted: Jul 21, 2018 05:58 AM

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Lowes Companies, Inc. (LOW), a major competitor to The Home Depot, Inc. (HD) in the home improvement

Question:

Year 3 Year 1 Year 2 $32,732 20,879 11,853 Total assets Total liabilities Total stockholders' equity $31,266 23,612 7,654 $31,721 21,753 9,968

Step by Step Answer:

a b The ratio of liabilities to stockholders equity for Lowes increas...View the full answer

Corporate Financial Accounting

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