1.

How much did The Home Depot owe for salaries and related expenses at January 30, 2011? Was this an increase or decrease from the previous year?

	$1,290 million (Decrease)
	$1,263 million (Increase)
	$1,290 million (Increase)
	$1,263 million (Decrease)

2.

Refer to the Revenues note in the Summary of Significant Accounting Policies that follows The Home Depots statements of cash flows. How does the company account for customer payments received in advance of providing services?

	Record the prepayment as revenue.
	The funds are deposited in the bank account and no entry is recorded.
	The revenue is deferred until the goods or services are provided to the customer.
	The funds are not deposited in the bank account, and no entry is recorded.

3.

Assume that The Home Depot experienced no shrinkage in the most current year. Using the balance sheet and income statement, estimate the amount of purchases in the year ended January 30, 2011.

	$10,625
	$45,130
	$44,693
	$10,188

4.

How much inventory does the company hold on January 30, 2011? Does this represent an increase or decrease in comparison to the prior year?

	$10,188 (Decrease)
	$10,625 (Increase)
	$10,625 (Decrease)
	$10,188 (Increase)

5.

What method(s) does the company use to determine the cost of its inventory? Describe where you found this information.

	Specific Identification; Managements Discussion and Analysis
	FIFO; Note 1
	Weighted average cost; the Balance Sheet
	LIFO; Note 1

6.

Compute to one decimal place the companys inventory turnover ratio and days to sell for the most recent year.

	6.5 and 56.2
	4.3 and 84.9
	4.2 and 86.9
	4.6 and 79.3

7.

Does the company believe FIFO, or weighted average cost, is a better method?

	Weighted average cost
	FIFO

8.

Where does the company disclose the amount of its Allowance for Doubtful Accounts? (Hint: The company refers to its Allowance for Doubtful Accounts as a Valuation Reserve related to Accounts Receivable.)

	On the balance sheet.
	On the income statement.
	On both the income statement and balance sheet.
	In the notes to the financial statements.

9.

Compute the companys receivables turnover ratio and days to collect for the year ended January 31, 2011.

	66.4 times and 5.5 days
	62.7 times and 5.8 days
	68.6 times and 5.3 days
	74.0 times and 4.9 days