1.

How much inventory does the company hold on February 2, 2014? Does this represent an increase or decrease in comparison to the prior year?

	$10,710, which is a decrease
	$10,710, which is an increase
	$11,057, which is a decrease
	$11,057, which is an increase

2.

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
	Weighted average cost; the Balance Sheet
	LIFO; Note 1
	FIFO; Note 1

3.

Compute to one decimal place the companys inventory turnover ratio and days to sell for the year ended February 2, 2014.

4.8 and 76.0

7.2 and 50.7

4.7 and 77.7

7.1 and 51.4

1.	On what dates did the companys 2013 and 2012 fiscal years end?

Current

Prior

	December 31, 2013 December 31, 2012
	January 31, 2014 January 31, 2013
	February 3, 2013 February 2, 2012
	February 2, 2014 February 3, 2013

2.

Which of the following are the amounts in the companys accounting equation (A = L + SE) for the 2013 fiscal year end?

	$40,518 = $27,996 + $12,522
	$41,084 = $23,307 + $17,777
	$78,812 = $5,385 + $73,427
	$15,279 + $23,348 = $40,518

3.

What is the companys current ratio at February 2, 2014?

	1.45
	0.70
	1.42
	0.38

4.

What does the companys current ratio in requirement 3 indicate?

Less than half of the company's assets are current.

The company has more than one dollar of current assets for every dollar of liabilities due in the next year.

Less than half of the company's liabilities are current.

The company has less than one dollar of current assets for every dollar of liabilities due in the next year.

1.

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.)

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

2.

Compute the companys receivables turnover ratio and days to collect for the year ended February 2, 2014.

	36.8 times and 9.9 days
	56.4 times and 6.5 days
	12.0 times and 30.4 days
	54.9 times and 6.6 days

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