I just did it in what i thought was a correct way, but it's wrong (please see screenshot)Debt and price-earnings ratiosThe Home Depot, Inc. (HD) operates over 2,200 home improvement retail stores and is a competitor of Lowe's (LOW). The following data (in millions) were adapted from recent financial statements of The Home Depot. Year 2 Year 1 Total assets $39,946 $40,518 Total liabilities 30,624 27,996 Total stockholders’ equity 9,322 12,522 Earnings per share $4.74 $3.78 1. Compute the debt ratio for Years 1 and 2. Round to one decimal place. Year 2Year 1Debt ratio_______%_______%2. Given your answer to part (1), what is the ratio of stockholders' equity to total assets? Round to one decimal place. Year 2Year 1Ratio of stockholders' equity to total assets_______%_______%3. Compute the ratio of liabilities to stockholders' equity. Round to one decimal place. Year 2Year 1Ratio of liabilities to stockholders' equity_______%_______% Debt and price-earnings ratiosThe Home Depot, Inc. (HD) operates over 2,200 home improvement retail stores and is a competitor of Lowe's (LOW). The following data (inmillions) were adapted from recent financial statements of The Home Depot.Year 2Year 1Total assetS$39,946 $40,518Total liabilities30,62427,996Total stockholders' equity9,32212,522Earnings per share$4.74$3.781. Compute the debt ratio for Years 1 and 2. Round to one decimal place.Year 2Year 1Debt ratio0.8 x %0.7X %2. Given your answer to part (1), what is the ratio of stockholders' equity to total assets? Round to one decimal place.Year 2Year 1Ratio of stockholders' equity to total assets0.2 X %0.3| х %3. Compute the ratio of liabilities to stockholders' equity. Round to one decimal place.Year 2Year 1Ratio of liabilities to stockholders' equity3.3X %2.2 X %

Formulas for: Debt ratio is Debt Ratio=Total LiabilitiesTotal Assets Shareholders' equity to total…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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I just did it in what i thought was a correct way, but it's wrong (please see screenshot)

Debt and price-earnings ratios

The Home Depot, Inc. (HD) operates over 2,200 home improvement retail stores and is a competitor of Lowe's (LOW). The following data (in millions) were adapted from recent financial statements of The Home Depot.

	Year 2	Year 1
Total assets	$39,946	$40,518
Total liabilities	30,624	27,996
Total stockholders’ equity	9,322	12,522
Earnings per share	$4.74	$3.78

1. Compute the debt ratio for Years 1 and 2. Round to one decimal place.

	Year 2	Year 1
Debt ratio	_______%	_______%

2. Given your answer to part (1), what is the ratio of stockholders' equity to total assets? Round to one decimal place.

	Year 2	Year 1
Ratio of stockholders' equity to total assets	_______%	_______%

3. Compute the ratio of liabilities to stockholders' equity. Round to one decimal place.

	Year 2	Year 1
Ratio of liabilities to stockholders' equity	_______%	_______%

Debt and price-earnings ratios
The Home Depot, Inc. (HD) operates over 2,200 home improvement retail stores and is a competitor of Lowe's (LOW). The following data (in
millions) were adapted from recent financial statements of The Home Depot.
Year 2
Year 1
Total assetS
$39,946 $40,518
Total liabilities
30,624
27,996
Total stockholders' equity
9,322
12,522
Earnings per share
$4.74
$3.78
1. Compute the debt ratio for Years 1 and 2. Round to one decimal place.
Year 2
Year 1
Debt ratio
0.8 x %
0.7
X %
2. Given your answer to part (1), what is the ratio of stockholders' equity to total assets? Round to one decimal place.
Year 2
Year 1
Ratio of stockholders' equity to total assets
0.2 X %
0.3| х %
3. Compute the ratio of liabilities to stockholders' equity. Round to one decimal place.
Year 2
Year 1
Ratio of liabilities to stockholders' equity
3.3
X %
2.2 X %

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