FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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)?
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