financial position and operating P2-7B Selected financial data of two competitors, Home Depot and Lowe's, are presented Compute ratios and co here. (All dollars are in millions.) Suppose the data were...


financial position and operating<br>P2-7B Selected financial data of two competitors, Home Depot and Lowe's, are presented Compute ratios and co<br>here. (All dollars are in millions.) Suppose the data were taken from the 2014 financial<br>statements of each company.<br>liquidity, solvency, and<br>ability for two compan:<br>(LO 2, 4, 5), AP<br>Home Depot<br>Lowe's<br>Income Statement Data for Year<br>$77,349<br>51,352<br>$48,283<br>31,556<br>12,022<br>239<br>Net sales<br>Cost of goods sold<br>Selling and administrative expenses<br>Interest expense<br>Other income<br>18,570<br>696<br>74<br>45<br>Income taxes<br>2,410<br>1,702<br>Net income<br>$ 4,395<br>$ 2,809<br>chapter 2 A Further Look at Financial Statements<br>Home Depot<br>Lowe's<br>Balance Sheet Data (End of Year)<br>$14,674<br>29,650<br>$ 8,686<br>22,183<br>Current assets<br>Noncurrent assets<br>Total assets<br>$44,324<br>$30,869<br>$ 7,751<br>$12,706<br>13,904<br>17,714<br>Current liabilities<br>Long-term liabilities<br>Total stockholders' equity<br>Total liabilities and stockholders' equity<br>7,020<br>16,098<br>$44,324<br>$30,869<br>Net cash provided by operating activities<br>Cash paid for capital expenditures<br>Dividends paid<br>$5,727<br>$3,558<br>$1,709<br>$4,347<br>$4,010<br>$428<br>Average shares outstanding<br>1,849<br>1,481<br>Instructions<br>For each company, compute these values and ratios.<br>(a) Working capital.<br>(b) Current ratio. (Round to two decimal places.)<br>(c) Debt to assets ratio.<br>(d) Free cash flow.<br>(e) Earnings per share.<br>(f)<br>Compare the liquidity, profitability, and solvency of the two companies.<br>

Extracted text: financial position and operating P2-7B Selected financial data of two competitors, Home Depot and Lowe's, are presented Compute ratios and co here. (All dollars are in millions.) Suppose the data were taken from the 2014 financial statements of each company. liquidity, solvency, and ability for two compan: (LO 2, 4, 5), AP Home Depot Lowe's Income Statement Data for Year $77,349 51,352 $48,283 31,556 12,022 239 Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income 18,570 696 74 45 Income taxes 2,410 1,702 Net income $ 4,395 $ 2,809 chapter 2 A Further Look at Financial Statements Home Depot Lowe's Balance Sheet Data (End of Year) $14,674 29,650 $ 8,686 22,183 Current assets Noncurrent assets Total assets $44,324 $30,869 $ 7,751 $12,706 13,904 17,714 Current liabilities Long-term liabilities Total stockholders' equity Total liabilities and stockholders' equity 7,020 16,098 $44,324 $30,869 Net cash provided by operating activities Cash paid for capital expenditures Dividends paid $5,727 $3,558 $1,709 $4,347 $4,010 $428 Average shares outstanding 1,849 1,481 Instructions For each company, compute these values and ratios. (a) Working capital. (b) Current ratio. (Round to two decimal places.) (c) Debt to assets ratio. (d) Free cash flow. (e) Earnings per share. (f) Compare the liquidity, profitability, and solvency of the two companies.

Jun 10, 2022
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