The Home Depot reported the following data (in millions) in its recent financial statements:
................................................... Year 2 .............. Year 1
Sales ........................................... $70,395 ............. $67,997
Total assets at the end of the year ......... 40,518 ............... 40,125
Total assets at the beginning of the year... 40,125 .............. 40,877
a. Determine the ratio of sales to assets for The Home Depot for Year 2 and Year 1. Round to two decimal places.
b. What conclusions can be drawn from these ratios concerning the trend in the ability of The Home Depot to effectively use its assets to generate sales?