Transcribed Image Text: Lowe’s Companies Inc., a major competitor of The Home Depot in the home improvement business, operates over 1,800 stores. Lowe’s recently reported the following balance sheet data

Transcribed Image Text: Lowe’s Companies Inc., a major competitor of The Home Depot in the home improvement
business, operates over 1,800 stores. Lowe’s recently reported the following balance sheet
data (in millions)
Year 2
Year 1
Total assets
$31,827
$32,732
Total liabilities
20,879
21,859
a. 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. Round
to two decimal places
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 ratio
of liabilities to stockholders’ equity of Lowe’s compare to that of The Home Depot?

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