Reference no: EM133434324
| Consolidated Balance Sheets |
|
|
|
| $ in Millions |
Classification |
2016 |
2015 |
| Current assets: |
|
|
|
| Cash and cash equivalents |
FA |
$ 558 |
$ 405 |
| Short-term investments |
FA |
100 |
307 |
| Merchandise inventory - net |
OA |
10,458 |
9,458 |
| Other current assets |
OA |
884 |
391 |
| Total current assets |
|
12,000 |
10,561 |
| Property, less accumulated depreciation |
OA |
19,949 |
19,577 |
| Long-term investments |
OA |
366 |
222 |
| Deferred income taxes - net |
OA |
222 |
241 |
| Goodwill |
OA |
1,082 |
154 |
| Other assets |
OA |
789 |
511 |
| Total assets |
|
34,408 |
31,266 |
| Current liabilities: |
|
|
|
| Short-term borrowings |
FL |
510 |
43 |
| Current maturities of long-term debt |
FL |
795 |
1,061 |
| Accounts payable |
OL |
6,651 |
5,633 |
| Accrued compensation and employee benefits |
OL |
790 |
820 |
| Deferred revenue |
OL |
1,253 |
1,078 |
| Other current liabilities |
OL |
1,975 |
1,857 |
| Total current liabilities |
|
11,974 |
10,492 |
| Long-term debt, excluding current maturities |
FL |
14,394 |
11,545 |
| Deferred revenue - extended protection plans |
OL |
763 |
729 |
| Other liabilities |
OL |
843 |
846 |
| Total liabilities |
|
27,974 |
23,612 |
| Commitments and contingencies |
|
|
|
| Shareholders' equity: |
|
|
|
| Preferred stock - $5 par value, none issued |
|
0 |
0 |
| Common stock - $.50 par value; Shares issued and outstanding 866 at February 3, 2017 and 910 at January 29, 2016, respectively |
|
433 |
455 |
| Capital in excess of par value |
|
0 |
0 |
| Retained earnings |
|
6,241 |
7,593 |
| Accumulated other comprehensive loss |
|
(240) |
(394) |
| Total shareholders' equity |
|
6,434 |
7,654 |
| Total liabilities and shareholders' equity |
|
$ 34,408 |
$ 31,266 |
| |
|
|
|
Reformulate financial statement and perform profitability and risk analysis for LOWES. (Use the provided Excel template to finish your work. You must submit your Excel file to show your work.)
A. Prepare reformulated income statements for fiscal year 2016 and 2015 and reformulated balance sheets for 2016 and 2015 in a way that distinguishes operating and financing activities and identifies taxes applicable to various components of income. B. For fiscal year 2016, calculate the following: return on common equity (ROE), return on net operating assets (RNOA), and net borrowing cost (NBC). Use average balance sheet amounts in denominators.
C. Calculate the financing leverage ratio (FLEV) at the beginning of the year and show that the following leverage equation for 2016 is satisfied: ROE = RNOA + [FLEV × (RNOA - NBC)]
D. Calculate the net operating profit margin ratio (NOPM) and the net operating asset turnover NOAT.
E. Calculate the current ratios and quick ratios for 2016 and 2015.
F. Calculate the liabilities-to-equity ratios and total debt-to-equity ratios for 2016 and 2015.
G. Calculate the interest coverage ratios for 2016 and 2015.
H. Calculate the account receivable turnover ratio, inventory turnover ratio, and account payable turnover ratio for 2016.
I. Calculate the days account receivable outstanding, days inventory outstanding, days account payable outstanding, and days financing required for 2016.