Home Depot, the warehouse retailer, traded at $42 per share when its 2005 financial statements were published.

Question:

Home Depot, the warehouse retailer, traded at $42 per share when its 2005 were published. Analysts were forecasting $2.59 earnings per share for 2006 and $2.93 for 2007. There were 2,185 million shares outstanding at the time. Below are income statements for fiscal years 2003-2005, along with information extracted from balance sheets. Home Depot's combined federal and state statutory tax rate is 37.7 percent. Develop forecasts of earnings for 2006 and 2007 from the How close are your forecasts to the analysts' forecasts?

From the balance sheet (inmillions):

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...