Ratio of Liabilities to Stockholders' Equity The Craft Bin, a major competitor of The Building Store...

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Accounting

Ratio of Liabilities to Stockholders' Equity
The Craft Bin, a major competitor of The Building Store in thehome improvement business, operates over 1,600 stores. Craft Binrecently reported the following balance sheet data (inmillions):
Year 2 Year 1
Total assets $30,192 $25,245
Total liabilities 15,392 11,745
a. Determine the total stockholders' equity atthe end of Years 2 and 1.
Year 2 $ 14,800 million
Year 1 $13,500 million
b. Determine the ratio of liabilities tostockholders' equity for Year 2 and Year 1. Round your answers totwo decimal places.
Year 2
Year 1
c. Based on (b), which is true regarding therisk to the creditors?
_________________ (increased, decreased, or nochange)
d. The Building Store, Inc., is the world'slargest home improvement retailer and one of the largest retailersin the United States based on net sales volume. The Building Storeoperates over 2,200 Building stores that sell a wide assortment ofbuilding materials and home improvement and lawn and gardenproducts.
The Building Store reported the following balance sheet data (inmillions)
Year 2 Year 1
Total assets $26,688 $22,932
Total stockholders' equity 13,900 12,600
For Year 2, the creditors of which company are more atrisk?
The Craft Bin

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All working forms part of the answer Amounts in are in millions Requirement a Already completed by you Working Year 2 Year 1 A Total Assets 3019200 2524500 B Total Liabilities 1539200 1174500 C A B Total Stockholders Equity See Answer

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	Year 2	Year 1
Total assets	$30,192	$25,245
Total liabilities	15,392	11,745