Question
Appendix A contains the financial statements of Home Depot Inc. for fiscal year ended January 31, 2016. Forecast the FY2016 income statement and balance sheet
Appendix A contains the financial statements of Home Depot Inc. for fiscal year ended January 31, 2016. Forecast the FY2016 income statement and balance sheet of Home Depot using the set of assumptions and requirements outlined below. Round all $ forecasts to millions. Use average historical revenue growth rate to forecast revenue (round the rate to nearest whole percent). Assume no change for goodwill, interest and investment income, interest expense, short-term debt, common stock and paid-in capital, and accumulated other comprehensive loss. Capital expenditures were $1,503 million, and dividends were $3,031 million for 2015. Forecast depreciation as a percentage of net PP&E at the start of the year. Use the historical FY2015 (FY ended January, 2016) rate to forecast FY2016. HD's long-term debt footnote indicates maturities of long-term debt of $110 million for fiscal 2017. Assume that Income Taxes Payable is 0. Assume the company will repurchase $4 billion of common stock in the coming year. Estimate forecast assumptions for balance sheet and income statement items (other than the long-term debt, provision for income taxes, dividends, and the above-mentioned assumptions) as percentage of revenues, rounded to 3 decimal places (for example, Merchandise inventory/net sales is .1334 or 13.3%). Use the most recent (FY ended January, 2016) and not average rates for the forecasting. Use cash and cash equivalents as plug.
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