A8 APPENDIX A Excerpts from the Fiscal 2019 10-K Annual Report of The Home Depot, fne. Fiscal 2019 and fiscal 2017 incluile 52 weekr. Fical 2018 includes 53 weeks. See accomponying notes to consolidnted financial tratements. THE HOME DEPOT, IMC. Consolidated Statements of Comprehensive income Refer to the financial statements of The Home Depot in ARpendix A. (Note: Fiscal 2019 for The Home Depot runs from February 4, 2019, to February 2, 2020. As with many retall companies, The Home Depot labels the period "Fiscal 2019 " even though it ends in the 2020 calendar year. The label "Fiscal 2019 is appropriate because Fiscal 2019 includes 11 months from the 2019 calendar year. The Home Depot explains its choice of fiscal period in Note 1 to its financial statements:) 1. How much inventory does the company hold on February 2,2020? Does this represent an increase or decrease in comparison to the prior year? $13,925 (in millions), which is a decrease $14.531 (in millions), which is an increase $13,925 (in millions), which is an increase $14,531 (in millions), which is a decrease 2. What method(s) does the company use to determine the cost of its inventory? Where is this information reported? Specific Identification; Management's Discussion and Analysis FIFO: Note 1 LIFO; Note 1 Weighted average cost, the Balance Sheet THE HOME DEPOT. INC See accompanying notes to consolidated financial statements. APPENDIX A Excerpts from the Fiscal 2019 10.K Annual Report of The Home Depor, the. A7 THE HOME DEPOT, INC. Consolidated Balance Sbeets in millions, except per share data ASSETS Current assets: Cash and cash equivalents Receivables, net Merchandise inventories Other current assets Total current assets Net property and equipment Operating lease right-of-use assets Goodwill Other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUTY Curreat liabilities: Short-term debt Accounts payable Acerued salaries and related expenses Sales taxes payable Deferred revenue Income taxes payable Current installments of Jong-term debt Current operating lease liabilities Other accrued expenses Total current liabilities Loag-term debt, excluding current installments Long-term operating lease liabilities Deferred income taxes Other long-term liabilities Total liabilities Common stock, par value $0.05; authorized: 10,000 shares; issued: 1,786 shares at February 2,2020 and 1,782 shares at February 3,2019 ; outstanding: 1,077 , hares at February 2, 2020 and 1,105 shares at February 3, 2019 Paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock, at cost, 709 shares at February 2, 2020 and 677 shares at February 3, 2019 Total stockholders' (deficit) equity Total liabilities and stockholders' equity February 2, 2020 "Fiscal 2019" February 3, 2019 "Fiscal 2018" S 2,133 2,106 14,531 1,04019,81022,770 5,595 2,254 \$ 1,778 1,936 13,925 \begin{tabular}{r} 8,890 \\ \hline 18,529 \\ 22,375 \end{tabular} 2,2528.877544,003 \$ 974 7,787 1,494 605 2,116 55 1,839 828 2,677 28,67018,375 28,670 5,066 706 1.535 54,352 5 1.339 7,755 1,506 656 1.782 11 1.056 16,7162,611 4911.86745,881 4911,86745,881 \begin{tabular}{rr} 89 & 89 \\ 11,001 & 10,578 \\ 51,729 & 46,423 \\ (739) & (772) \\ (65,196) & (1,878)(58,196) \\ \hline(3,116) & $44,003 \\ \hline 51,236 & \end{tabular} See accompanying notes to consolidated finoncial shusements: 3. Compute to one decimal place the company's inventory turnover ratio and days to sell for the year ended February 2, 2020. (Use 365 days in a year.) 7.8 and 46.8 5.1 and 71.6 7.5 and 48.7 5.0 and 73.0 A10 APPENDIX A Excerpts from the Fiscal 2019 10-K Annul Report of The Home Depot, loc. THE HOME DEPOT, INC. Consolidated Statements of Cash Flow: Furcal 2019 and forcal 2017 inclade 52 wreks. Fiscal 2018 includer 53 werts See accompanying notes to consolidated financial stabroments