Examining HomeDepot’s Capital StructureTo answer the following questions use the financial...

Examining HomeDepot’s Capital Structure

To answer the following questions use the financial statements for Home Depot, Inc, inAppendixA at the end of the textbook

a. Compute the company’s current ratio and quick ratio for the most recent year reported. Do these ratios provide support that Home Depot is able to repay its current liabilities asthey , come due? Explain.

b. Compute the company’s debt ratio. Does Home Depot appear to have excessive debt? Explain.

c. Examine the company’s statement ofcash flows. Does Home Depot’s cash flow from operating activities appear adequate tocover itscurrent liabilities as they come due? Explain.