1. Does Lowe’s report higher or lower Net Sales than The Home Depot for fiscal 2016?

2. Assuming that Cost of Sales is the same thing as Cost of Goods Sold, compute Lowe’s gross profit percentage for fiscal 2016. Is it greater or less than The Home Depot’s? Based on this, where are consumers likely to find lower markups?

3. Assume Lowe’s and The Home Depot experienced no shrinkage in the most recent year. Using both companies’ balance sheets and income statements, estimate the amount of purchases for fiscal 2016. How much greater (or less) were Lowe’s purchases than The Home Depot’s in that year?

Refer to the financial statements of The Home Depot in Appendix A and Lowe’s in Appendix B at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 2017. Fiscal 2016 for Lowe’s runs from January 30, 2016, to February 3, 2017.