3.38; 77.3; 0.69 1.93; 50.4; 0.69 1.95; 50.4; 0.69 3.32; 77.3; 0.69 Compute the

Question

3.38; 77.3; 0.69

1.93; 50.4; 0.69

1.95; 50.4; 0.69

3.32; 77.3; 0.69

Compute the following ratios for The Home Depot’s year ended February 2, 2014: fixed asset turnover, days to sell, and debt-to-assets. To calculate the ratios, use the financial statements of The Home Depot in Appendix A. (Use 365 days in a year. Round intermediate calculations to 2 decimal places. Round fixed asset turnover and debt-to-assets final ratios to 2 decimal places. Round days to sell ratio to 1 decimal place.

phi25915_appAA1-A12.indd 5/12 249 Cah and Cash Equivalens Recevatlas, et Oer CTsAsses Toal CarresL Acoes Property and Equignet, acest Net Propery aed Equipment LAA MILTTIES AND STOCKNOLDERS' EQUITY s 579 5 3375 NCCOUEtS Payable lsEas PyaHe noa Tae Payable Canert Inselcas of Lons-Teen Deb Long-Term Dett,excung cuet inislkrms Oher Lang Term Lilii Tocal Linblies SIOCluOLDERS' EQUITY Fotniary 2, 2014 sml 1.484 titiontres sd February 5, 2015 Pid-In Capital Retained Haings ,2031191) Tetal Liahlities and Sokhalders Kquty

Explanation / Answer

Home depot's 1 Fixed Asset Turnover ratio = Net Sales/Average Net Property, Plant & Equipment = (78812)/((23348+24069)/2) = 3.32 2 Days to sell = 365/Inventory turnover ratio = 365/4.724767 = 77.3 Inventory turnover ratio =Cost of goods sold/Average Inventory =(51422)/((11057+10710)/2) 4.724767 3 Debt to asset = Total Liabilties/Total asset = 27996/40518 = 0.69 So, its last alternative given in the question which is correct. Thank You

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