Understanding income statement relationships-Home Depot, Inc. Selected data from the January 28, 2007, and January 29, 2006, consolidated balance sheets and income statements for the years then ended for Home Depot, Inc., follow. All amounts are reported in millions.

a. Calculate the amount of Home Depot’s gross profit for each year. Has gross profit as a percentage of sales changed significantly during the past year?

b. Calculate the amount of Home Depot’s operating income for each year. Has operating income as a percentage of sales changed significantly during the past year?

c. After completing parts a and

b, calculate the other missing amounts for each year.

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Net Sales. Cost of sales... Selling, general, and administrative expenses. Operating income... Interest expense, net of interest income Provision for income taxes... Net income... 2007 $90,837 2006 $ 81,511 61,054 54,191 20,110 17,957 ? ? ? 81 3,547 ? $ 5,761 $ 5,838