The Home Depot is the world's largest home improvement retailer and one of the largest retailers in the United States based on net sales volume. The Home Depot operates over 2,200 Home Depot® stores that sell a wide assortment of building materials and home improvement and lawn and garden products. The Home Depot recently reported the following balance sheet data (in millions) Year 2 Year 1 Total assets $39,946 $40,518 Total stockholders' equity 12,522 9,322 a. 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. Round to two decimal places What conclusions regarding the margin of protection to the creditors can you C. draw from (b)?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
The Home Depot is the world's largest home improvement retailer and one of the largest
retailers in the United States based on net sales volume. The Home Depot operates over
2,200 Home Depot® stores that sell a wide assortment of building materials and home
improvement and lawn and garden products.
The Home Depot recently reported the following balance sheet data (in millions)
Year 2
Year 1
Total assets
$39,946
$40,518
Total stockholders' equity
12,522
9,322
a. 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. Round
to two decimal places
What conclusions regarding the margin of protection to the creditors can you
C.
draw from (b)?
Transcribed Image Text:The Home Depot is the world's largest home improvement retailer and one of the largest retailers in the United States based on net sales volume. The Home Depot operates over 2,200 Home Depot® stores that sell a wide assortment of building materials and home improvement and lawn and garden products. The Home Depot recently reported the following balance sheet data (in millions) Year 2 Year 1 Total assets $39,946 $40,518 Total stockholders' equity 12,522 9,322 a. 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. Round to two decimal places What conclusions regarding the margin of protection to the creditors can you C. draw from (b)?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 3 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education