Chat with AI
Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372 Exercise 39
Comparing Financial Information
Refer to the financial statements of The Home Depot in Appendix A and Lowe's in Appendix B at the end of this book, or download the annual reports from the Cases section of the text's Web site at www.mhhe.com/phillips4e.
Required:
1. Calculate the debt-to-assets ratio for Lowe's at January 28, 2011. Based on this calculation, was Lowe's financing more or less risky than The Home Depot's at the end of January 2011
2. Calculate the asset turnover ratio for Lowe's for the year ended January 30, 2011. Lowe's total assets at the end of fiscal 2009 were $33,005 million. Based on this calculation, did Lowe's use its assets more or less efficiently than The Home Depot in 2010-2011
3. Calculate the net profit margin ratio for Lowe's for the year ended January 28, 2009. Based on this calculation, did Lowe's generate more or less profit per dollar of sales than The Home Depot in 2010-2011
Refer to the financial statements of The Home Depot in Appendix A and Lowe's in Appendix B at the end of this book, or download the annual reports from the Cases section of the text's Web site at www.mhhe.com/phillips4e.
Required:
1. Calculate the debt-to-assets ratio for Lowe's at January 28, 2011. Based on this calculation, was Lowe's financing more or less risky than The Home Depot's at the end of January 2011
2. Calculate the asset turnover ratio for Lowe's for the year ended January 30, 2011. Lowe's total assets at the end of fiscal 2009 were $33,005 million. Based on this calculation, did Lowe's use its assets more or less efficiently than The Home Depot in 2010-2011
3. Calculate the net profit margin ratio for Lowe's for the year ended January 28, 2009. Based on this calculation, did Lowe's generate more or less profit per dollar of sales than The Home Depot in 2010-2011
Explanation
This question doesn’t have an expert verified answer yet, let Examlex AI Copilot help.
Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
