a) Calculate free cash flow for Home Depot for the two most recent reported years. You will need to refer to the Statement of Cash Flows. Show your calculations. b) Interpret the results of your calculations based on the textbook discussion in a short paragraph.

Balance Sheet		Jan 29 2017	Jan 31 2016
ASSETS
Current Asset
Cash and Cash Equivalents		$2,538	$2,216
Receivables: Net		$2,029	$1,890
Merchandise Inventories		$12,549	$11,809
Other Current Asset		$608	$569
Total Current Asset		$17,724	$16,484
Property and Equipment, at cost		$40,426	$39,266
Less Accumulated Depreciation and Amortization		$18,512	$17,075
Net Property and Equipment		$21,914	$22,191
Goodwill		$2,093	$2,102
Other Assets		$1,235	$1,196
Total Assets		$42,966	$41,973
LIABILITIES AND STOCKHOLDERS EQUITY
Current Liabilities:
Short-Term Debt		$710	$350
Accounts Payable		$7,000	$6,565
Accrued Salaries and Related Expenses		$1,484	$1,515
Sales Taxes Payable		$508	$476
Deferred Revenue		$1,669	$1,566
Income Taxes Payable		$25	$34
Current Installments of Long-Term Debt		$542	$77
Other Accrued Expenses		$2,195	$1,941
Total Current Liabilities		$14,133	$12,524
Long-Term Debt, excluding current installments		$22,349	$20,789
Other Long-Term Liabilities		$1,855	$1,965
Deferred Income Taxes		$296	$379
Total Liabilities		$38,633	$35,657
STOCKHOLDERS EQUITY
Common Stock		$88	$88
Paid-In Capital		$9,787	$9,347
Retained Earnings		$35,519	$30,973
Accumulated Other Comprehensive Loss		$(867)	$(898)
Treasury Stock		$(40,194)	$(33,194)
Total Stockholders Equity		$4,333	$6,316
Total Liabilities and Stockholders Equity		$42,966	$41,973
Income Statement		Jan 29 2017	Jan 31 2016
NET SALES		$94,595	$88,519
Cost of Sales		$62,282	$58,254
GROSS PROFIT		$32,313	$30,265
Operating Expenses:
Selling, General and Administrative		$17,132	$16,801
Depreciation and Amortization		$1,754	$1,690
Total Operating Expenses		$18,886	$18,491
OPERATING INCOME		$13,427	$11,774
Interest and Other (Income) Expense:
Interest and Investment Income		$(36)	$(166)
Interest Expense		$972	$919
Interest and Other, net		$936	$753
EARNINGS BEFORE PROVISION FOR INCOME TAXES		$12,491	$11,021
Provision for Income Taxes		$4,534	$4,012
NET EARNINGS		$7,957	$7,009