Home Depot Selected financial statement information for Home Depot is given in the table below. Using this information, answer the following questions:

(all numbers in millions)

Retained Earnings balance—02/02/2003 $15,971 million

1. Compute Home Depot’s Retained Earnings balance at the end of each year.
2. Divide dividends into net income for each year. The result is termed the “dividend payout ratio.” Did Home Depot’s dividend payout ratio increase or decrease over time?

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Net Income Dividends For year ended February 1, 2004. $4,304 $595 For year ended January 30, 2005 5,001 719 For year ended January 29, 2006 5,838 857