1.

How much did The Home Depot owe for salaries and related expenses at February 2, 2014? Was this an increase or decrease from the previous year?

	$5,797 million (Decrease)
	$5,797 million (Increase)
	$1,428 million (Decrease)
	$1,428 million (Increase)

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?

	The funds are not 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 deposited in the bank account and no entry is recorded.
	Record the prepayment as revenue.

3.

What adjusting journal entry must The Home Depot make when it provides services paid by gift card?

debit Cash, credit Unearned Revenue

debit Unearned Revenue, credit Service Revenue

debit Service Revenue, credit Unearned Revenue

debit Unearned Revenue, credit Cash

1.

Which of the two basic reporting approaches for the cash flows from operating activities did The Home Depot use?

	Direct
	Indirect

2.

What amount of income tax payments did The Home Depot make during the year ended February 2, 2014?

	$639 million
	$2,839 million
	$12 million
	$3,082 million

3.

In the fiscal year ended February 2, 2014, The Home Depot generated $7,628 million from operating activities. Indicate where this cash was spent by listing the two largest cash outflows.

Dividends ($2,243 million) and Share Repurchase ($8,546 million)

Amortization ($1,757 million) and Capital Expenditures ($1,389 million)

Share Repurchase ($8,546 million) and Capital Expenditures ($1,389 million)

Amortization ($1,757 million) and Share Repurchase ($8,546 million)

1.

How much did The Home Depots sales revenue increase or decrease in the year ended February 2, 2014?

	Increased $4,058 (million)
	Increased $850 (million)
	Decreased $4,058 (million)
	Decreased $850 (million)

2.

What is the largest expense on the income statement for the year ended February 2, 2014, and how much did it change from the previous year?

	Selling, General and Administrative Expenses, which decreased $1,400 (million)
	Selling, General and Administrative Expenses, which increased $89 (million)
	Cost of Sales, which increased $2,510 (million)
	Cost of Sales, which decreased $2,779 (million)

3.

Which of the following was The Home Depots net profit margin in the year ended February 2, 2014?

6.8%

0.07%

$5,385

$3.78

1.

What amount of net income was reported (in millions) for the year ended February 2, 2014?

	$78,812
	$23,180
	$27,390
	$5,385

2.

What amount of sales revenue (in millions) was earned for the year ended February 2, 2014?

	$5,385
	$23,180
	$27,390
	$78,812

3.

What was the cost (in millions) of the companys inventory on February 2, 2014?

	$11,057
	$5,385
	$1,929
	$531

APPENDIX A Ecerpts froen the Facal 2013 Asneal Report of The Home Depo, Ine THE NOME DIPOT, INC, AND SUESIDIARIES Consolidated Balance February 2 February 3, amounts in miltions, except share and per share data Cerrent Assets: 2,494 Cash and Cahalents Receivables, net Merchandise Inventories Ober Current Assets $ 1,929 11,057 Total Current Assets Property and Equipmem, at cost Ne Property and Equipment Other Assets LIABILITIES AND STOCKHOLDERS' EQUITY Currem Liabilities: 5,797 5,376 Accounts Payable Accrued Salarics and Related Espenses Sales Taxes Payable Deterred Revenue Income Taxes Payable Current Installments of Long-Tem Debt Ober Acereed Expenses Toeal Cument Liabilities Long-Term Deb, excluding crem insallmems Other Long-Term Liabilities Deferred Income Tases Total Liabilities STOCKHOLDERS' EQUITY Common Stock, par value $0.05 autborized: 10 billion shares; isssed: 1.761 billion shares at February 2, 2014 and 1.754 billion shares at Fcbruary 3, 2013; outstanding I.380 billion shares at February 2, 2014 and 1.484 blonshures a February 3, 2013 Paid-In Capita Retained Earnngs Accumelated Oiher Comprehensive Income Treasury Stock, atost, 381 millon shares at February 2, 2014 and 270 milion shares at Fcbnuary 3, 2013 1 19,194 Total Stockholders' Equity Total Liabilities and Stockholders' Equity accumpasying Noer o Coolidasnd Finaerial Seasemnt