1. Which of the two basic reporting approaches for the cash flows from operating activities did Lowe’s use? Is this the same as what The Home Depot used?

2. What amount of cash did Lowe’s receive from issuing long-term debt during the year ended February 3, 2017? How much cash did Lowe’s use to repay long-term debt during the same year? What is the net difference between these inflows and outflows? Compare this net inflow or outflow of cash for long-term debt at Lowe’s to The Home Depot for Fiscal 2016. 

3. In the fiscal year ended February 3, 2017, Lowe’s generated $5,617 million from operating activities. Indicate where Lowe’s spent much of this money by listing the two largest cash outflows reported in the investing or financing activities sections. Was the reason for Lowe’s largest cash outflow similar to or different from The Home Depot’s for the same period?

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. )