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

Question:

The Home Depot, Inc., is the world€™s largest home improvement retailer and one of the largest retailers in the United States based on net sales volume. The Home Depot operates over 1,100 Home Depot® stores that sell a wide assortment of building materials and home improvement and lawn and garden products. The Home Depot also operates over 25 EXPO Design Center stores that offer interior design products, such as kitchen and bathroom cabinetry, tiles, flooring, and lighting fixtures, and installation services.
For the years ending February 2, 2003, and February 3, 2002, The Home Depot reported the following data (in millions):

a. Determine the total liabilities as of February 2, 2003, and February 3, 2002.
b. Determine the ratio of liabilities to stockholders€™ equity for 2003 and 2002. Round to two decimal places.
c. What conclusions regarding the margin of protection to the creditors can you draw from(b)?

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...