Selected financial data of two competitors home depot and

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Selected financial data of two competitors, Home Depot and Lowe%u2019s, are presented here. (All dollars are in millions.) Suppose the data were taken from the 2014 financial statements of each company. Home Depot Lowe%u2019s Income Statement Data for Year Net sales $77,349 $48,283 Cost of goods sold 51,352 31,556 Selling and administrative expenses 18,570 12,022 Interest expense 696 239 Other income 74 45 Income taxes 2,410 1,702 Net income $ 4,395 $ 2,809.

Home Depot Lowe%u2019s Balance Sheet Data (End of Year) Current assets $14,674 $ 8,686 Noncurrent assets 29,650 22,183 Total assets $44,324 $30,869 Current liabilities $12,706 $ 7,751 Long-term liabilities 13,904 7,020 Total stockholders%u2019 equity 17,714 16,098 Total liabilities and stockholders%u2019 equity $44,324 $30,869 Net cash provided by operating activities $5,727 $4,347 Cash paid for capital expenditures $3,558 $4,010 Dividends paid $1,709 $428 Average shares outstanding 1,849 1,481 Instructions For each company, compute these values and ratios. (a) Working capital. (b) Current ratio. (Round to two decimal places.) (c) Debt to assets ratio. (d) Free cash flow. (e) Earnings per share. (f) Compare liquidity, profitability and solvency of the 2 companies.

Reference no: EM13583091

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