Purchase Solution

Ratio of liabilites to stockholders equity

Not what you're looking for?

Ask Custom Question

Lowes is a major competition to Home Depot in the home improvement business and operates over 700 stores. For the years ending January 31,2003 and Feb 1,2002 lowes reported the following balance sheet data in millions.
2003- total assets-16,109 total liabilities-8302
2002- total assets-13,736- totoal liabilites-7062

a. determine the total stockholders equity as of January 31st, 2003 and Feb 1st 2002
b. Determine the ratio of liablilites to stockholders equity for 2003 and 2002. Round to two decimal places
c. What conclusions regarding the margin of protection to the creditors can you draw from (b)
d. How does the ratio of liabilites to stockholders equity of Lowe's compare to that of Home depot- hint see previous posted question.

Purchase this Solution
Solution Summary

The solution determines the total stockholders equity and the ratio of liablilites to stockholders equity.

Solution Preview

a. determine the total stockholders equity as of January 31st, 2003 and Feb 1st 2002

stock owners equity= total assets - total liabilities

31-Jan-03

total assets = 16,109
total liabilities 8,302

Therefore stock owners equity= total assets - total liabilities ...

Purchase this Solution
Free BrainMass Quizzes
Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

View More Free Quizzes
Related BrainMass Solutions

  • financial statements for balance sheets

    2)the ratio of stockholders equity to total equities is? 3)the book value per share of common stock is?

  • Ratio calculations for Jackson Electronics

    20.93% 20.74% 28.4% 22.28% Net Income/Total stockholders equity The solution explains how to calculate various ratios for Jackson Electronics

  • Computing 14 Financial Ratios from Financial Statements

    Equity EPS 1.22 0.99 Net Income / Outstanding Shares Price Earnings Ratio 15.9 x 19.7 Market value of share / EPS Payout Ratio 0 % 0 Dividends per share / EPS Debt to Assets 19.1% % 14.5% Total Debt / Total Assets Times Interest Earned

  • Financial Ratios - Balance Sheet and Income Analysis

    Debt Ratio b. Current Ratio c. Return on Sales d. Asset Turnover e. Return on Equity f. Price-Earnings Ratio The first step is to categorize the data in the table into a balance sheet and statement of income.

  • Compute ROA, current ratio, acid-test, profit margin

    H.What is the rate of return on stockholders equtiy for 2008? I. What is the rate of return on stockholders equtiy for 2009? J. What is the debt-equity ratio for 2009?

  • Microsoft's working captial, current ratio,acid-test ratios

    income of $1,840 vand $1,119 15,678 18,429 Total stockholders' equity $64,912 $74,825 Total liabilities and stockholders' equity $81,732

  • Ratios

    +accrued expenses = 50,000+30,000=80,000 Current Ratio = 160,000/80,000 = 2 times Times Interest Earned = EBIT/Interest EBIT is the operating profit = 160,000 Times Interest Earned = 160,000/16,000 = 10 times In debt to assets ratio, all liabilites

  • Ratio of Current to Total Assets

    The firm's current liabilites cost 7% to maintain and the average annual cost of long term funds is 20% The firm's initial ratio of current to total asset is ?

  • Pro Forma Statements and Ratio

    .$122.5 Total liabilities and equity..........$122.5 Sales for 2007 were $350 million, while net income for the year was $10.5 million. Upton paid dividends of $4.2 million to common stockholders.

View More Related Solutions