Refer to the income statement of The Home Depot, Inc., in Illustration 4–2 of this chapter. 

Required: 

1. Is this income statement presented in the single-step or multiple-step format? 

2. What is the company’s approximate income tax rate? 3. What is the percentage of net income relative to net sales? 

Income statement of The Home Depot, Inc.

Transcribed Image Text:

Consolidated Statement of Earnings ($ in millions) Year ended January 29, 2017 $94,595 62,282 Net sales Cost of goods sold Gross profit Selling, general, and administrative expenses Depreciation and amortization 32,313 17,132 1,754 Operating income 13,427 Interest and investment income 36 Interest expense (972) Income before income taxes 12,491 Income tax expense 4,534 Net income $ 7,957 Source: Home Depot, Inc.