DO NOT USE THE INCORRECT VALUES. $($MARKED WITH AN X$)$

Make a table showing work:

Compute and Interpret Liquidity, Capital Structure $($Solvency$),$ and Coverage Ratios

Selected balance sheet and income statement information for Home Depot for two recent years follow:

$ millions Current Year Prior Year Cash $$2,757$ $$2,343$ Accounts receivable $3,3173,426$ Current assets $32,47129,055$ Current liabilities $23,11028,693$ Short$-$term debt $-1,035$ Current installments of long$-$term debt $1,2312,447$ Current operating lease liabilities $945830$ Long$-$term debt, excluding current installments $41,96236,604$ Long$-$term operating lease liabilities $6,2265,353$ Total liabilities $74,88373,572$ Treasury stock $(87,298)(80,794)$ Total stockholders' equity $($deficit$)1,562(1,696)$ Interest expense $1,6171,347$ Earnings before interest and taxes $($EBIT$)24,03923,040$ Cash from operating activities $($Operating cash$)14,61516,571$ Depreciation and amortization $2,9752,862$ Capital expenditures $3,1192,566$

Required

Compute the following ratios for both years:

Capital Structure Ratios Coverage Ratios Liquidity Ratios Liabilities$-$to$-$equity ratio Times interest earned Current ratio Total debt$-$to$-$equity ratio Cash from operations to total debt Quick ratio

Capital structure ratios

Coverage ratios

Liquidity ratios

Compute the capital structure ratios.

Capital structure ratios Numerator Denominator Result Liabilities$-$equity ratio Total liabilities ov Equity $($deficit$)$ ov Current year $ $74,883$ $ $1,562*47\mathrm{.}94$ Prior year $ $73,572$ $ $(1,696)$vv $-43\mathrm{.}38$ Total debt$-$to$-$equity ratio Total debt $$ Equity $($deficit$)$ ov Current year $ $42,997$ $ $1,562*27\mathrm{.}53$ Prior year $ $37,639$ xx $ $(1,696)$vv $-22\mathrm{.}19$ Home Depot had k balances in Treasury stock in both years. When analyzing the company's capital structure, these amounts

total stockholders' equity. Capital structure ratios

Coverage ratios

Liquidity ratios

Compute the coverage ratios. Capital structure ratios

Coverage ratios

Compute the liquidity ratios.

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|\}$

$\backslash$hline Liquidity Ratios & Numerator & Denominator & Result $\backslash \backslash$

$\backslash$hline Current ratio & Currentassets $\backslash (\backslash$Rightarrow $\backslash )$ v & Current liabilities $\backslash (\backslash$Rightarrow $\backslash$checkmark $\backslash )$ & $\backslash \backslash$

$\backslash$hline Current year & $\backslash$$ $32,471$ & $\backslash$$ $23,110$ & $1\mathrm{.}405\backslash \backslash$

$\backslash$hline Prior year & $\backslash$$ $29,055$ & $\backslash$$ $28,693$ & $1\mathrm{.}013\backslash \backslash$

$\backslash$hline Quick ratio & Cash and cash equivalents $\backslash (\backslash$quad $\backslash )*$ x & Current liabilities & $\backslash \backslash$

$\backslash$hline Current year & $\backslash$$ $6,074$ & $23,110$ & $0\mathrm{.}263\backslash \backslash$

$\backslash$hline Prior year & $\backslash$$ $5,769$ & $28,693$ & $0\mathrm{.}201\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$