The following financial statement excerpt is taken from the 2018 Annual Report (for the fiscal year ended February 3, 2019) for The Home Depot, Inc.:

1. The Cost of Sales amount on The Home Depot, Inc., consolidated statements of earnings represents the net cost of the goods that were sold for the period. For the year ended February 3, 2019, what percentage of net sales was the cost of sales? For the year ended January 28, 2018?
2. What factors might affect a merchandising company’s cost of sales from one period to another?

Analyze Online: 

On The Home Depot, Inc., website (www.homedepot.com), locate the Investor Relations section.
3. Review the consolidated statements of operations found in the current year’s annual report.
4. What amount is reported for cost of sales?
5. What amount is reported for net sales?

Transcribed Image Text:

(In millions) Net Sales Cost of Sales Gross Profit Consolidated Statements of Earnings For the year ended February 3, 2019 $108,203 71,043 $ 37,160 January 28, 2018 $100,904 66,548 $ 34,356