Lowe's Companies Inc., a major competitor of The Home Depot in the home improvementbusiness, operates over 1,800 stores. Lowe's recently reported the following balance sheetdata (in millions)Year 2Year 1Total assets$31,827$32,732Total liabilities20,87921,859a. Determine the total stockholders' equity at the end of Years 2 and 1.b. Determine the ratio of liabilities to stockholders' equity for Year 2 and Year 1. Roundto two decimal placesWhat conclusions regarding the risk to the creditors can you draw from (b)?C.d. Using the balance sheet data for The Home Depot in Exercise 1-26, how does the ratioof liabilities to stockholders' equity of Lowe's compare to that of The Home Depot?

a) Total owner's equity at the end of the years 2 and 1 for Lowe's Companies Inc., is given below:

Answered: Lowe's Companies Inc., a major…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following are taken from the financial statements of Curry Company as of December 2021. Assets: Cash 341,600 Account Receivable 200,000 Inventory 308,400 Property, Plant, Equipment 500,000 Liabilities: Notes payable 280,000 Accounts Payable 781,700 Bonds payable 2,000,000 6. What is the company's current ratio? a. 0.80 b. 0.51 c. 0.21 d. 3.03 7. What is the company's quick ratio? a. 0.51 b. 0.80 c. 1.93 d. 0.32
Examine the following selected financial information for Best Value Corporation and Modern Stores, Inc., as of the end of their fiscal years ending in 2018: Data table (In millions) Best Value Corporation Modern Stores, Inc. 1. Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . $15,256 $203,110 2. Total common stockholders' equity. . . . . $3,075 $71,460 3. Operating income. . . . . . . . . . . . . . . . . . . . $1,350 $26,820 4. Interest expense. . . . . . . . . . . . . . . . . . . . . . $88 $2,020 5. Leverage ratio. . . . . . . . . . . . . . . . . . . . . . . . 6. Total debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. Debt ratio. . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. Times interest earned. . . . . . . . . . . . . . . . . Requirements…
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The balance sheet for Gallinas Industries is as follows, Gallinas Industries Balance Sheet December 31 Assets Liabilities and Stockholders' Equity Cash $35,000 Accounts payable $101,920 Marketable securities 101,920 Notes payable 62,720 Accounts receivable 109,760 Accrued wages 62,720 Inventories 148,960 Total current liabilities $227,360 Total current assets $395,640 Long-term debt $203,840 Land and buildings (net) $145,635 Preferred stock $94,080 Machinery and equipment 242,725 Common stock (10,000 shares) 141,120 Total fixed assets (net) $388,360 Retained earnings 117,600 Total assets $784,000 Total liabilities and stockholders' equity $784,000 Additional information with respect to the firm is available: 1. Preferred stock can be liquidated at book value. 2. Accounts receivable and inventories can be liquidated at 85%of book value. 3. The firm…
The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Line Item Description Current Year Previous Year Current assets: Cash $417,200 $318,000 Marketable securities 483,100 357,800 Accounts and notes receivable (net) 197,700 119,200 Inventories 1,167,500 905,200 Prepaid expenses 601,500 578,800 Total current assets $2,867,000 $2,279,000 Current liabilities: Accounts and notes payable (short-term) $353,800 $371,000 Accrued liabilities 256,200 159,000 Total current liabilities $610,000 $530,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. Line Item Description Current Year Previous Year 1. Working capital ? ? 2. Current ratio ? ? 3. Quick ratio ? ? from the preceding year to the current year. The working capital, current ratio, and quick…
Ratio Analysis Presented below are summary financial data from Pompeo's annual report: Amounts in millions Balance sheet Cash and cash equivalents $6,328 Marketable securities 63,298 Accounts receivable (net) 32,785 Total current assets 136,808 Total assets 430,773 Current liabilities 113,172 Long-term debt 21,837 Shareholders' equity 204,834 Income Statement Interest expense 1,257 Net income before taxes 42,021 Calculate the following ratios: (round to two decimal places) a. Times-interest-earned ratio b. Quick ratio
The following financial data (in thousands) were taken from recent financial statements of Staples, Inc.: Please see the attachment for details: 1. Determine the times interest earned ratio for Staples in Year 3, Year 2, and Year 1? Round your answers to one decimal place.2. Evaluate this ratio for Staples.
The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Line Item Description Current Year Previous Year Current assets: Cash $445,700 $352,000 Marketable securities 516,100 396,000 Accounts and notes receivable (net) 211,200 132,000 Inventories 370,300 241,600 Prepaid expenses 190,700 154,400 Total current assets $1,734,000 $1,276,000 Current liabilities: Accounts and notes payable (short-term) $295,800 $308,000 Accrued liabilities 214,200 132,000 Total current liabilities $510,000 $440,000 a. Determine for each year the quick ratio. Round ratios to one decimal place.
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The Butler-Huron Company's balance sheet and income statement for last year are as follows: Balance Sheet (in Millions of Dollars) Assets Cash and marketable securities Accounts receivable* Inventories** Other current assets Total current assets Plant and equipment (net) Other assets Total assets $82 820 1,507 22 $2,431 3,967 6,460 $6,460 Liabilities and Equity Accounts payable****** Accrued liabilities (salaries and benefits) Other current liabilities Total current liabilities Long-term debt and other liabilities Earnings before taxes Taxes Earnings after taxes (net income) Common stock Retained earnings Net sales Cost of sales Selling, general, and administrative expenses Other expenses Total expenses Total stockholders' equity Total liabilities and equity **Assume that average inventory over the year was the same as ending inventory. ***Assume that average accounts payable are the same as ending accounts payable. Income Statement (in Millions of Dollars) *Assume that all sales are…
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