7-3 for the three companies! ly Or WIl c. Is the amount of interest expense diff

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7-3

for the three companies! ly Or WIl c. Is the amount of interest expense different d. Is the amount of interest paid different for each of the companies? Why or why not? e. I s the amount of total liabilities different for each of the companies? Why or why not? Research Assignment Analyzing two real-world companies' use of liabilities Complete the requirements below using the most current annual reports or the Forms 10-K fo Lowe's, a company that sells home-building supplies, and Dominion Resources, one of the nation' leading generators of energy. To obtain the Forms 10-K, use either the EDGAR system following th instructions in Appendix A or the companies' websites. The annual reports can be found on the com- panies' websites. Required a. he most? Show your Which of these two companies is using computations eb sis t b. Lowe's has some lines of credit type arrangements. How nuch money is available to Lowe's under these credit arrangements? Writing Assignment Definition of elements of financial statements ATC 7-4 Putting "yum" on people's faces around the world is the mission of Yum! Brands, Inc. Yum! was two or more distinct companies. The company was originally composed of K iCo in 1997. A spin-off occurs when a company separates its operations into and m! had total assels FC, Pizza Hut, Taco Bell and was operated as a part of PepsiCo prior to the spin-off. In 2015, Yu 8 billion, long-term debt of $3.05 billion, and total liabilities of $7.10 billion. Yum!'s income before interest and taxes in 2015 was $1.92 billion. Its average interest rate on long-term debt was

Explanation / Answer

a.) All dollars amount are in millions.

Lowe's financed 83.36% of its total assets with liability as on February 2, 2018.

Total liabilities ÷ Total assets = %

$29418 ÷ $35291 = 83.36%

Dominion Resources financed 65.13% of its assets with liability as on December 31, 2017

Total liabilities ÷ total assets = %

$ 7777 ÷ $ 11940 = 65.13%

Therefore Lowe's company using more debt to finance its assets.

b.) Lowe's has credit arrangements of $ 10.2 billions.

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