Refer to the financial statements of The Home Depot in Appendix A at the end of this book. 

Required:

1. What were the year-end dates for the “Fiscal 2016” and “Fiscal 2015” periods?

2. Which of the following are the amounts in the company’s accounting equation (A = L + SE) for the 2016 fiscal year-end?

a. $94,595 = $62,282 + $32,313
b. $42,966 = $38,633 + $4,333
c. $41,973 = $35,657 + $6,316
d. $81,599 = $38,633 + $42,966

3. What is the company’s current ratio at January 29, 2017?

a. 0.80
b. 1.25
c. 0.41
d. 1.11

4. What does the company’s current ratio in requirement 3 indicate?

a. The company has more than one dollar of current assets for every dollar of current liabilities due in the next year.
b. The company has less than one dollar of current assets for every dollar of current liabilities due in the next year.
c. Less than half of the company’s assets are current.
d. Less than half of the company’s liabilities are current.

Transcribed Image Text:

Fiscal 2016 Fiscal 2015 a. January 31, 2016 b. December 31, 2016 C. January 31, 2016 d. January 29, 2017 February 1, 2015 December 31, 2015 January 31, 2015 January 31, 2016