Answer all the questions. Please submit your work in Word or PDF formats only.You can submit an Excel file to support calculations, but please "cut and paste" your solutions into the Word or PDF file. Be sure to show how you did your calculations.

ACT 5140 - Accounting for Decision Makers HW #1 - Appendix A Directions: Answer all the questions. Please submit your work in Word or PDF formats only. You can submit an Excel file to support calculations, but please \"cut and paste\" your solutions into the Word or PDF file. Be sure to show how you did your calculations. Also, please be sure to include your name at the top of the first page of your file. Question #1 Using the accompanying financial statements (Excel Workbook), assess The Home Depot concerning liquidity, solvency, profitability, and stock performance. For each area, you should calculate the ratios from Appendix A and provide a brief analysis of the ratios calculated. You do not need to perform vertical analysis for this assignment. I include historical stock price information and outstanding common share information below. You do not need to look beyond the financial statements to complete this assignment. Fiscal Year Ended 2/1/2015 Adjusted Closing Price $103.34 Common Shares Outstanding (millions) 1,307 2/2/2014 $74.44 2/3/2013 $63.87 1/29/2012 $41.67 1,380 1,486 1,523 HOME DEPOT INC $ in millions Year Ending NET SALES Cost of sales GROSS PROFIT Operating Expenses: Selling, General and Administrative Depreciation and Amortization Total Operating Expenses OPERATING INCOME Interest and Other (Income) Expense: Interest and Investment Income Interest Expense Other 2/1/2015 $83,176 54,222 28,954 2/2/2014 $78,812 51,422 27,390 2/3/2013 $74,754 48,912 25,842 1/29/2012 $70,395 46,133 24,262 16,834 1,651 18,485 10,469 16,597 1,627 18,224 9,166 16,508 1,568 18,076 7,766 16,028 1,573 17,601 6,661 (337) 830 0 (12) 711 0 (20) 632 (67) (13) 606 0 Interest and Other, net Earnings before income taxes Provision for Income Taxes NET EARNINGS 493 9,976 3,631 $6,345 699 8,467 3,082 $5,385 545 7,221 2,686 $4,535 593 6,068 2,185 $3,883 Basic earnings per share Diluted earnings per share $4.74 $4.71 $3.78 $3.76 $3.03 $3.00 $2.49 $2.47 Dividends per share $1.88 $1.56 $1.16 $1.04 HOME DEPOT INC $ in millions As of 2/1/2015 2/2/2014 2/3/2013 1/29/2012 ASSETS Current assets: Cash and cash equivalents Accounts receivable, net Merechandise inventories Other current assets $1,723 1,484 11,079 1,016 $1,929 1,398 11,057 895 $2,494 1,395 10,710 773 $1,987 1,245 10,325 963 Total Current Assets 15,302 15,279 15,372 14,520 Property & Equipment, at cost Less Accumulated Depreciation and Amortization Net Property & Equipment 38,513 15,793 22,720 39,064 15,716 23,348 38,491 14,422 24,069 38,975 14,527 24,448 Goodwill Other assets TOTAL ASSETS 1,353 571 $39,946 1,289 602 $40,518 1,170 473 $41,084 1,120 430 $40,518 LIABILITIES AND SHAREHOLDERS EQUITY Current liabilities: Short-term debt Accounts payable Accrued salaries & related expenses Sales taxes payable Deferred revenue Income taxes payable Current installments of long-term debt Other accrued expenses $290 5,807 1,391 434 1,468 35 38 1,806 $0 5,797 1,428 396 1,337 12 33 1,746 $0 5,376 1,414 472 1,270 22 1,321 1,587 $0 4,856 1,372 391 1,147 23 30 1,557 Total current liabilities 11,269 10,749 11,462 9,376 Long-term debt, excluding current installments Other long-term liabilities Deferred income taxes Total liabilities 16,869 1,844 642 30,624 14,691 2,042 514 27,996 9,475 2,051 319 23,307 10,758 2,146 340 22,620 Shareholders equity: Common stock Paid-in capital Retained earnings Accumulated other comprehensive income (loss) Treasury stock, at cost Total shareholders equity 88 8,885 26,995 (452) (26,194) 9,322 88 8,402 23,180 46 (19,194) 12,522 88 7,948 20,038 397 (10,694) 17,777 87 6,966 17,246 293 (6,694) 17,898 TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $39,946 $40,518 $41,084 $40,518 HOME DEPOT INC $ in millions Year Ending OPERATING ACTIVITIES: Net earnings Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization Stock-based compensation expense Goodwill impairment Changes in Assets and Liabilities, net of the effects of acquisition and disposition Receivables, net Merchandise inventories Other current assets Accounts payable and accrued expenses Deferred revenue Income taxes payable Deferred income taxes Other long-term liabilities Other 2/1/2015 2/2/2014 $6,345 $5,385 $4,535 $3,883 1,786 225 (323) 1,757 228 0 1,684 218 97 1,682 215 0 (81) (124) (199) 244 146 168 159 (152) 48 (15) (455) (5) 605 75 119 (31) 13 (48) (143) (350) 93 698 121 87 107 (180) 8 (170) 256 159 422 (29) 14 170 (2) 51 $8,242 $7,628 $6,975 $6,651 (1,442) 323 0 (200) 48 (1,389) 0 0 (206) 88 (1,312) 0 0 (170) 50 (1,221) 0 101 (65) 56 Net cash used by investing activities FINANCING ACTIVITIES: Proceeds from short-term borrowings, net Proceeds from long-term borrowings, net of discount Repayments of long-term debt Repurchases of common stock Proceeds from sales of common stock Cash dividends paid to stockholders Other financing activities ($1,271) ($1,507) ($1,432) ($1,129) 290 1,981 (39) (7,000) 252 (2,530) (25) 0 5,222 (1,289) (8,546) 241 (2,243) (37) 0 0 (32) (3,984) 784 (1,743) (59) 0 1,994 (1,028) (3,470) 306 (1,632) (218) Net cash used by financing activities ($7,071) ($6,652) ($5,034) ($4,048) Change in Cash and Cash Equivalents Effect of exchange rate changes on cash and cash equivalents ($100) (106) ($531) (34) $509 (2) $1,474 (32) Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 1,929 $1,723 2,494 $1,929 1,987 $2,494 545 $1,987 SUPPLEMENTAL DISCLOSURE OF CASH PAYMENTS MADE FOR Interest, net of capitalized interest Income taxes $782 $3,435 $639 $2,839 $617 $2,482 $580 $1,865 Net cash provided by operating activities INVESTING ACTIVITIES: Capital expenditures Proceeds from sales of investments Proceeds from sale of business Payments for business acquired Proceeds from sales of property & equipment 2/3/2013 1/29/2012