The Home Depot is the world's largest home improvement retailer and one of the largestretailers in the United States based on net sales volume. The Home Depot operates over2,200 Home Depot® stores that sell a wide assortment of building materials and homeimprovement and lawn and garden products.The Home Depot recently reported the following balance sheet data (in millions)Year 2Year 1Total assets$39,946$40,518Total stockholders' equity12,5229,322a. Determine the total liabilities 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 margin of protection to the creditors can youC.draw from (b)?

Answered: The Home Depot is the world's largest…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Rotorua Products sells agricultural products in the burgeoning Asian market. The company's current assets, current liabilities, and sales over the last five years (Year 5 is the most recent year) are as follows: Sales Cash Accounts receivable, net Inventory Total current assets Current liabilities Sales Current assets: Cash Accounts receivable, net Inventory Total current assets Current liabilities Year 11 Year 2 Year 3 Year 4 Year 5 $4,545,400 $4,737,850 $ 5,126,380 $5,421,900 $5,776,190 Year 1 $ 88,854 418,283 800,380 $ 1,307,517 $ 313,578 Required: 1. Express all of the asset, liability, and sales data in trend percentages. Use Year 1 as the base year. Note: Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3). % % % % % % Year 2 $ 88,845 $ 77,057 435,833 587,279 $ 90,380 417,076 876,061 $1,383,517 $ 1,350,248 $ 1,466,414 $1,552,502 $ 346,822 $ 336,685 $ 335,107 $ 390,612 825,570 882,078 % % % % % % Year 3 % % % % Year 4 % % $ 80,928 569,984…
PROBLEM 1: The ZZZ Company, Inc. sells office furniture. There are 100,000 shares of common stock outstanding. A list of their accounts and their balances at December 31, 2022 except for the Retained earnings account which is at 1- 1-22 are as follows: Debit Credit Cash $ 524,000 Accounts receivable 216,000 Net Plant & Equipment 348,000 Current Liabilities 360,000 Cost of goods sold 1,176,000 Income tax expenses 115,200 Common stock 1,080,000 Administrative expenses 216,000 Retained earnings, (January 1, 2022) 139,200 Sales revenue 2,184,000 Deferred revenue 20,000 Sales returns and allowances 84,000 Prepaid expenses 780,000 Interest expense 24,000 Wind damage loss 96,000 Selling expenses 204,000 Totals $3,783,200 $3,783,200 Required: Prepare a multiple-step income statement.
Wolverine World Wide, Incorporated, designs, markets, and licenses casual, industrial, performance outdoor, and athletic footwear and apparel under a variety of brand names, such as Hush Puppies, Wolverine, Merrell, Sperry, and Saucony, to a global market. The following transactions occurred during a recent year. Dollars are in millions. a. Issued common stock to investors for $15.4 cash (example). b. Purchased $1,601.6 of additional inventory on account. c. Paid $65.1 on long-term debt principal and $5.6 in interest on the debt. d. Sold $2,372 of products to customers on account. e. Cost of the products sold was $1,419.6. f. Paid cash dividends of $23 to shareholders. g. Purchased for cash $36.4 in additional property, plant, and equipment. h. Incurred $705.6 in selling expenses, paying three-fourths in cash and owing the rest on account. i. Earned $1 of interest on investments, receiving 80 percent in cash. j. Incurred $30 in interest expense to be paid at the beginning of next year.…
Vijay
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 __________ % __________ % 4. A high ratio of…
Chipotle Mexican Grill began with a single location in 1993 and now operates more than 2,450 restaurants. Adapted versions of the company's income statements (in $000s) are as follows: 2017 2016 Revenue $4476,412 $3,904.384 Restaurant operating costs Food, beverage, and packaging 1.535.428 1,365,580 Labor 1,205,992 1.105,001 Occupancy 327,132 293,636 Other operating costs 651.644 641.953 General and administrative expenses 296,388 276,240 Depreciation and amortization 163,348 146,368 Pre-opening costs 12,341 17,162 Loss on disposal of assets 13,345 23,877 Total operating expenses 4,205,618 3,869,817 Income from operations 270,794 34,567 Interest and other income (expense), net 4,949 4,172 Income before income taxes 275,743 38,739 Provision for income taxes 99,490 15,801 Net income $176,253 $22,938 Prepare a common-size income statement for each year. (Round answers to 1 decimal place, e.g. 50.1%.) 2017 2016 Revenue Restaurant operating costs Food, beverage, and packaging Labor…
Forecast Income Statement and Balance Sheet Following are the income statement and balance sheet for Medtronic PLC. Note: Complete the entire question using the following Excel template: Excel Template. Then enter the answers into the provided spaces below with two decimal places. Medtronic PLC Consolidated Statement of Income $ millions, For Fiscal Year Ended April 26, 2019 Net sales $30,557 Costs and expenses Cost of products sold 9,155 Research and development expense 979 Selling, general, and administrative expense 10,418 Amortization of intangible assets 1,764 Restructuring charges, net 83 Certain litigation charges, net 166 Other operating expense, net 258 Operating profit 7,734 Other nonoperating income, net (157) Interest expense 1,444 Income before income taxes 6,447 Income tax provision 547 Net income 5,900 Net income loss attributable to noncontrolling interests (19) Net income attributable to Medtronic $5,881…
h9
Urmilaben
Profitability Ratios East Point Retail, Inc., sells apparel through company-owned retail stores. Financial information for East Point follows (in thousands): Fiscal Year 3 Fiscal Year 2 Net income Interest expense Fiscal Year 3 $144,900 3,000 Total assets (at end of fiscal year) $1,897,402 $1,677,598 Total stockholders' equity (at end of fiscal year) 1,017,383 737,911 Assume the apparel industry average return on total assets is 8.0%, and the average return on stockholders' equity is 15.0% for the year ended April 2, Year 3. Fiscal Year 2 a. Determine the return on total assets for East Point for fiscal Years 2 and 3. Round your answers to one decimal place. Fiscal Year 2 $74,600 11,200 7.4 X % % Fiscal Year 3 Fiscal Year 2 Fiscal Year 1 % b. Determine the return on stockholders' equity for East Point for fiscal Years 2 and 3. Round your answers to one decimal place. Fiscal Year 3 % $1,994,704 1,037,937
In Progress SUPERVALU, one of the largest grocery retailers in the United States, is headquartered in Minneapolis. Suppose the following financial information (in millions) was taken from the company's 2022 annual report: net sales $41,940, net income $419, beginning common stockholders' equity $2,635, and ending common stockholders' equity $2,878. Compute the return on common stockholders' equity. (Round answer to 1 decimal place, e.g. 10.5%.) Return on common stockholders' equity %
Wolverine World Wide, Incorporated, designs, markets, and licenses casual, industrial, performance outdoor, and athletic footwear and apparel under a variety of brand names, such as Hush Puppies, Wolverine, Merrell, Sperry, and Saucony, to a global market. The following transactions occurred during a recent year. Dollars are in millions. a. Issued common stock to investors for $21.4 cash (example). b. Purchased $1,647.6 of additional inventory on account. c. Paid $49.1 on long-term debt principal and $4.6 in interest on the debt. d. Sold $2,371 of products to customers on account. e. Cost of the products sold was $1,402.6. f. Paid cash dividends of $29 to shareholders. g. Purchased for cash $29.4 in additional property, plant, and equipment. h. Incurred $707.6 in selling expenses, paying three-fourths in cash and owing the rest on account. i. Earned $1 of interest on investments, receiving 80 percent in cash. j. Incurred $32 in interest expense to be paid at the beginning of next year.…

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS