Populate the data below using the 10K Financial Statements for Home Depot and Lowes

Populate the data below using the 10K Financial Statements for Home Depot and

Lowes:

Figures in millions                               HomeDepot    Lowes Companies

Total Liabilities, 2014...........................

Total Current Liabilities, 2014 .............

Total Liabilities, 2013...........................

Total Assets, 2014 ...............................

Total Current Assets, 2014 .................

Total Quick Assets, 2014 ....................

Total Assets, 2013 ...............................

Revenue, 2014 ......................................

Cost of Goods Sold, 2014 ...................

Net Income, 2014 .................................

a. Compute the return on equity ratio for Home Depot and Lowes Companies for 2014. Which company earned the higher return for its shareholders?

b. Compute the debt-to-equity ratio for each company as of 2014. Which company relies more on creditor financing?

c. Prepare a 2014 income statement for each company using the format in Exhibit 1.8 in your textbook. For each firm, compute the gross profit as a percentage of sales revenue.

d. Based on your answers to questions a, b, and c, compare these two companies. What might be the cause of any differences in the ratios that you computed?

e. Compute the Net Working Capital for Home Depot and Lowes for 2014.

f. Compute the Current Ratio for Home Depot and Lowes for 2014.

g. Compute the Quick Ratio for Home Depot and Lowes for 2014.

h. Based upon your answers to questions e, f, and g, compare these two companies. What might the cause of any differences be?