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

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The Home Depot, Inc., is the world’s largest home improvement retailer and one of the
largest retailers in the United States based on sales volume. Home Depot operates over 2,200 stores that sell a wide assortment of building, home improvement, and lawn and garden items.
  Home Depot recently reported the following end-of-year balance sheet data (in millions):

                                                                             Year 3             Year 2             Year 1    
                      Total assets                                     $40,518          $41,804           $40,518
                      Total stockholders’ equity               12,522            17,777             17,898

A. Determine the total liabilities 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

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Financial And Managerial Accounting

ISBN: 9781337119207

14th Edition

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

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