AP13-3 (Static) Calculating Profitability, Turnover, Liquidity, Solvency, and Market Ratios L0 13-4, 13-5, 13-6, 13-7, 138 Using the financial information presented in Exhibit 13.1, calculate the following ratios for fiscal 2020 for The Home Depot: Note: Do not round your intermediate calculations and round your answers to 2 decimal places. Round your percentage answers to 2 decimal places. (i.e., 0.1234 should be entered as 12.34 ). \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ THE HOME DEPOT, INCORPORATED } \\ \hline \multicolumn{4}{|c|}{ CONSOLIDATED STATEMENTS OF EARNINGS } \\ \hline in millions, except per share data & Fiscal 2020 & Fiscal 2019 & Fiscal 2018 \\ \hline Net sales & $132,110 & $110,225 & $108,203 \\ \hline Cost of sales & 87,257 & 72,653 & 71,043 \\ \hline Gross profit & 44,853 & 37,572 & 37,160 \\ \hline Operating Expenses: & & & \\ \hline Selling, general and administrative & 24,447 & 19,740 & 19,513 \\ \hline Depreciation and amortization & 2,128 & 1,989 & 1,870 \\ \hline Impairment loss & - & - & 247 \\ \hline Total operating expenses & 26,575 & 21,729 & 21,630 \\ \hline Operating income & 18,278 & 15,843 & 15,530 \\ \hline Interest and other (income) expense: & & & \\ \hline Interest and investment income & (47) & (73) & (93) \\ \hline Interest expense & 1,347 & 1,201 & 1,051 \\ \hline Other & - & - & 16 \\ \hline Interest and other, net & 1,300 & 1,128 & 974 \\ \hline Earnings before provision for income taxes & 16,978 & 14,715 & 14,556 \\ \hline Provision for income taxes & 4,112 & 3,473 & 3,435 \\ \hline Net Earnings & $12,866 & $11,242 & $11,121 \\ \hline Basic weighted average common shares & 1,074 & 1,093 & 1,137 \\ \hline Basic earnings per share & $11.98 & $10.29 & $9.78 \\ \hline Diluted weighted average common shares & 1,078 & 1,097 & 1,143 \\ \hline Diluted earnings per share & $11.94 & $10.25 & $9.73 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|l|}{ THE HOME DEPOT, INCORPORATED } \\ \hline \multicolumn{3}{|l|}{ CONSOLIDATED BALANCE SHEETS } \\ \hline in millions, except per share data & \begin{tabular}{c} End of \\ Fiscal 2020 \end{tabular} & \begin{tabular}{l} End of \\ Fiscal 2019 \end{tabular} \\ \hline \multicolumn{3}{|l|}{ Assets } \\ \hline \multicolumn{3}{|l|}{ Current assets: } \\ \hline Cash and cash equivalents & $7,895 & $2,133 \\ \hline Receivables, net & 2,992 & 2,106 \\ \hline Merchandise inventories & 16,627 & 14,531 \\ \hline Other current assets & 963 & 1,040 \\ \hline Total current assets & 28,477 & 19,810 \\ \hline Net property and equipment & 24,705 & 22,770 \\ \hline Operating lease right-of-use assets & 5,962 & 5,595 \\ \hline Goodwill & 7,126 & 2,254 \\ \hline Other assets & 4,311 & 807 \\ \hline Total assets & $70,581 & $51,236 \\ \hline \multicolumn{3}{|l|}{ Liabilities and Stockholders' Equity } \\ \hline \multicolumn{3}{|l|}{ Current liabilities: } \\ \hline Short-term debt & $ & $974 \\ \hline Accounts payable & 11,606 & 7,787 \\ \hline Accrued salaries and related expenses & 2,463 & 1,494 \\ \hline Sales taxes payable & 774 & 605 \\ \hline Deferred revenue & 2,823 & 2,116 \\ \hline Income taxes payablev & 193 & 55 \\ \hline Current installments of long-term debt & 1,416 & 1,839 \\ \hline Current operating lease liabilities & 828 & 828 \\ \hline Other accrued expenses & 3,063 & 2,677 \\ \hline Total current liabilities & 23,166 & 18,375 \\ \hline Long-term debt, excluding current installments & 35,822 & 28,670 \\ \hline Long-term operating lease liabilities & 5,356 & 5,066 \\ \hline Deferred income taxes & 1,131 & 706 \\ \hline Other long-term liabilities & 1,807 & 1,535 \\ \hline Total liabilities & 67,282 & 54,352 \\ \hline \begin{tabular}{l} Common stock, par value $0.05; authorized: 10,000 \\ shares; issued: 1,789 shares at end of Fiscal 2020 , \\ and 1,786 shares at end of Fiscal 2019 ; outstanding: \\ 1,077 shares at end of Fiscal 2020 and end of Fiscal \\ 2019 \end{tabular} & 89 & 89 \\ \hline Paid-in capital & 11,540 & 11,001 \\ \hline Retained earnings & 58,134 & 51,729 \\ \hline Accumulated other comprehensive loss & (671) & (739) \\ \hline \begin{tabular}{l} Treasury stock, at cost, 712 shares at end of Fiscal \\ 2020 , and 709 shares at end of Fiscal 2019 \end{tabular} & (65,793) & (65,196) \\ \hline Total stockholders' equity (deficit) & 3,299 & (3,116) \\ \hline Total liabilities and stockholders' equity & $70,581 & $51,236 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ THE HOME DEPOT, INCORPORATED } \\ \hline \multicolumn{4}{|c|}{ CONSOLIDATED STATEMENTS OF CASH FLOWS } \\ \hline in millions & Fiscal 2020 & Fiscal 2019 & Fiscal 2018 \\ \hline \multicolumn{4}{|l|}{ Cash Flows from Operating Activities: } \\ \hline Net earnings & $12,866 & $11,242 & $11,121 \\ \hline \multicolumn{4}{|l|}{\begin{tabular}{l} Reconciliation of net earnings to net cash provided by \\ operating activities: \end{tabular}} \\ \hline Depreciation and amortization & 2,519 & 2,296 & 2,152 \\ \hline Stock-based compensation expense & 310 & 251 & 282 \\ \hline Impairment loss & - & - & 247 \\ \hline Changes in receivables, net & (465) & (170) & 33 \\ \hline Changes in merchandise inventories & (1,657) & (593) & (1,244) \\ \hline Changes in other current assets & 43 & (135) & (257) \\ \hline Changes in accounts payable and accrued expenses & 5,118 & 32 & 870 \\ \hline Changes in deferred revenue & 702 & 334 & 80 \\ \hline Changes in income taxes payable & (149) & 44 & (42) \\ \hline Changes in deferred income taxes & (569) & 202 & 26 \\ \hline Other operating activities & 121 & 184 & (103) \\ \hline Net cash provided by operating activities & 18,839 & 13,687 & 13,165 \\ \hline \multicolumn{4}{|l|}{ Cash Flows from Investing Activities: } \\ \hline Capital expenditures & (2,463) & (2,678) & (2,442) \\ \hline Payments for businesses acquired, net & (7,780) & - & (21) \\ \hline other investing activities & 73 & 25 & 47 \\ \hline Net cash used in investing activities & (10,170) & (2,653) & (2,416) \\ \hline \multicolumn{4}{|l|}{ Cash Flows from Financing Activities: } \\ \hline Repayments of short-term debt, net & (974) & (365) & (220) \\ \hline \begin{tabular}{l} Proceeds from long-term debt, net of discount and \\ premiums \end{tabular} & 7,933 & 3,420 & 3,466 \\ \hline Repayments of long-term debt & (2,872) & (1,070) & (1,209) \\ \hline Repurchases of common stock & (791) & (6,965) & (9,963) \\ \hline Proceeds from sales of common stock & 326 & 280 & 236 \\ \hline Cash dividends & (6,451) & (5,958) & (4,704) \\ \hline Other financing activities & (154) & (140) & (153) \\ \hline Net cash used in financing activities & (2,983) & (10,798) & (12,547) \\ \hline Change in cash and cash equivalents & 5,686 & 236 & (1,798) \\ \hline \begin{tabular}{l} Effect of exchange rate changes on cash and cash \\ equivalents \end{tabular} & 76 & 119 & (19) \\ \hline Cash and cash equivalents at beginning of year & 2,133 & 1,778 & 3,595 \\ \hline Cash and cash equivalents at end of year & $7,895 & $2,133 & $1,778 \\ \hline Supplemental Disclosures: & & & \\ \hline Cash paid for income taxes & $4,654 & $3,220 & $3,774 \\ \hline Cash paid for interest, net of interest capitalized & 1,241 & 1,112 & 1,035 \\ \hline Non-cash capital expenditures & 274 & 136 & 248 \\ \hline \end{tabular}