29 The Home Depot is the largest home improvement retailer in the United States. Home Depot financial statements for 2024 are shown below (in thousands): 2024 Income Statement Net sales. Cost of goods sold Gross profit Operating expenses Interest expense Income tax expense Net income Assets Cash $ 10,000 (6,550) 3,450 (2,350) (300) (320) $ 480 Comparative Balance Sheets Accounts receivable Inventory Property, plant, and equipment (net) Bonds payable Common stock Retained earnings Liabilities and Shareholders' Equity Current liabilities December 31 2024 $ 700 700 900 3,000 $ 5,300 1,700 1,900 700 1,000 $ 5,300 2023 $ 600 500 700 3,100 $ 4,900 $ 1,450 1,900 700 850 $ 4,900 Required: Calculate Home Depot ratios for 2024. Note: Consider 365 days a year. Do not round intermediate calculations and round your final answers to 2 decimal places.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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octoring Enabled: Chapter 4 Required Homework (G... i
03:48:29
5
The Home Depot is the largest home improvement retailer in the United States. Home Depot financial statements for 2024 are shown
below (in thousands):
2024 Income Statement
Net sales
Cost of goods sold
Gross profit
Operating expenses
Interest expense
Income tax expense
Net income
Assets
Cash
$ 10,000
(6,550)
3,450
(2,350)
(300)
(320)
$ 480
Comparative Balance Sheets
Accounts receivable
Inventory
Property, plant, and equipment (net)
Bonds payable
Common stock
Retained earnings
Liabilities and Shareholders' Equity
Current liabilities
December 31
2024
Saved
$ 700
700
900
3,000
$ 5,300
1,700
1,900
700
1,000
$ 5,300
2023
$ 600
500
700
3,100
$ 4,900
$ 1,450
1,900
700
850
$ 4,900
Help
Required:
Calculate Home Depot ratios for 2024.
Note: Consider 365 days a year. Do not round intermediate calculations and round your final answers to 2 decimal places.
Transcribed Image Text:octoring Enable x + getproctorio.com/secured #lockdown octoring Enabled: Chapter 4 Required Homework (G... i 03:48:29 5 The Home Depot is the largest home improvement retailer in the United States. Home Depot financial statements for 2024 are shown below (in thousands): 2024 Income Statement Net sales Cost of goods sold Gross profit Operating expenses Interest expense Income tax expense Net income Assets Cash $ 10,000 (6,550) 3,450 (2,350) (300) (320) $ 480 Comparative Balance Sheets Accounts receivable Inventory Property, plant, and equipment (net) Bonds payable Common stock Retained earnings Liabilities and Shareholders' Equity Current liabilities December 31 2024 Saved $ 700 700 900 3,000 $ 5,300 1,700 1,900 700 1,000 $ 5,300 2023 $ 600 500 700 3,100 $ 4,900 $ 1,450 1,900 700 850 $ 4,900 Help Required: Calculate Home Depot ratios for 2024. Note: Consider 365 days a year. Do not round intermediate calculations and round your final answers to 2 decimal places.
7. Return on assets
8. Return on equity
9. Equity multiplier
10. Return on equity (using the DuPont framework)
%
%
times
%
< Prev
ONDER
5 of 5
Transcribed Image Text:7. Return on assets 8. Return on equity 9. Equity multiplier 10. Return on equity (using the DuPont framework) % % times % < Prev ONDER 5 of 5
Expert Solution
Explanation -

Ratio Analysis -

The ratio is the technique used by the prospective investor or an individual or strategist to read the company information in more detailed end accurate ways.

Ratio immediately recognizes the Liquidity, Profitability, and Solvency of the company.

By using ratio analysis comparison between two companies can also be done very easily and accurately.

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