APPENDIX A Excerpts from the Fiscal 2016 Annual Report of The Home Depot, Inc A5 THE HOME DEPOT, INC. AND SUBSIDIARIES Consolidated Balance Sheets January 29, 2017 "Fiscal 2016" January 31, 2016 "Fiscal 2015" $ 2,538 2,029 12,549 608 17,724 40,426 18,512 21,914 2,093 1.235 $42,966 $ 2,216 1.890 11.809 569 16,484 39,266 17.075 22.191 2,102 1.196 $41,973 amounts in millions, except share and per share data ASSETS Current Assets Cash and Cash Equivalents Receivables, net Merchandise Inventories Other Current Assets Total Current Assets Property and Equipment, at cost Less Accumulated Depreciation and Amortization Net Property and Equipment Goodwill Other Assets Total Assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Short-Term Debt Accounts Payable Accrued Salaries and Related Expenses Sales Taxes Payable Deferred Revenue Income Taxes Payable Current Installments of Long-Term Debt Other Accrued Expenses Total Current Liabilities Long-Term Debt, excluding current installments Other Long-Term Liabilities Deferred Income Taxes Total Liabilities STOCKHOLDERS' EQUITY Common Stock, par value 50.05; authorized: 10 billion shares, issued 1.776 billion shares at January 29, 2017 and 1.772 billion shares at January 31, 2016 outstanding: 1.203 billion shares at January 29, 2017 and 1 252 billion shares at January 31, 2016 11 Paid in Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock a cout, 573 million shares at January 29, 2017 and $20 million shares at January 31, 2016 Total Stockholders' Equity Total Liabilities and Stockholders' Equity See coming Note to Colidated Financial Statement $ 710 7,000 1,484 508 1,669 25 542 2,195 14,133 22,349 1,855 296 38,633 $ 350 6.565 1.515 476 1.566 34 77 1.941 12.524 20,789 1.965 379 35,657 88 88 9,787 35,519 (867) (40,194) 9,347 30,973 (898) (33,194) 4,333 $42,966 6316 $41.973 HD APPENDIX A Excerpts from the Fiscal 2016 Annual Report of The Home Depot, Inc. THE HOME DEPOT, INC. AND SUBSIDIARIES Consolidated Statements of Earnings Fiscal Year Ended Jan. 31, 2016 "Fiscal 2015" Feb. 1, 2015 "Fiscal 2014 $88.519 58,254 $83,176 54,787 30.265 28,389 16,801 1,690 18.491 16,280 1,640 17.920 10,469 11.774 Jan. 29, 2017 amounts in millions, except per share data "Fiscal 2016" NET SALES $94,595 Cost of Sales 62,282 GROSS PROFIT 32,313 Operating Expenses: Selling, General and Administrative 17,132 Depreciation and Amortization 1,754 Total Operating Expenses 18.886 OPERATING INCOME 13,427 Interest and Other (Income) Expense Interest and Investment Income (36) Interest Expense 972 Interest and Other, net 936 EARNINGS BEFORE PROVISION FOR INCOME TAXES 12,491 Provision for Income Taxes 4,534 NET EARNINGS $ 7,957 Weighted Average Common Shares 1,229 BASIC EARNINGS PER SHARE $ 6.47 Diluted Weighted Average Common Shares 1,234 DILUTED EARNINGS PER SHARE $ 6.45 Fiscal year ended January 29, 2017 Janwary 31, 2016, and February , 2015 include 52 weeks See accompanying Notes to Consolidated Pinancial Statements (166) 919 753 (337) 830 493 11,021 4,012 9.976 3,631 $ 7,009 1.277 $ 5.49 1.283 $ 6,345 1.338 $4.74 1.346 $ 5.46 $4.71 THE HOME DEPOT, INC. AND SUBSIDIARIES Consolidated Statements of Comprehensive Income Fiscal Year Ended Jan. 31, 2016 "Fiscal 2015 Feb 1, 2015 "Fiscal 2014" 56,345 $7,009 amounts in millions Jan. 29, 2017 Fiscal 2016" Net Earnings $7.957 Other Comprehensive Income (Loss): Foreign Currency Translation Adjustments (3) Cash Flow Hedges, set of tax 34 Other Total Other Comprehensive Income (Loss) 31 COMPREHENSIVE INCOME $7,988 ( Bicol nun ended January 29, 2017. January 31, 2016, and Febrwary 1, 2015 include 52 veki. Ser accompanying Notes in Consolidated Financial Statements (412) (34) (510) 11 (498) (446) $6,563 $5.847 THE HOME DEPOT, INC. AND SUBSIDIARIES Consolidated Statements of Stockholders' Equity Stockholders Equity $12,522 6.345 122 136 (510) 11 225 1 (7,000) (2,530) 1 $ 9,322 7.009 Accumulated Common Stock Other Pald-In Retained Comprehensive Treasury Stock amounts in millions, except per share data Shares Amount Capital Earnings Income (Loss) Shares Amount Balance, February 2, 2014 1,761 $88 $8,402 $23,180 $ 46 (381) ${19,194) Net Earnings 6,345 Shares Issued Under Employee Stock Plans 7 122 Tax Effect of Stock-Based Compensation 136 Foreign Currency Translation Adjustments (510) Cash Flow Hedges, net of tax 11 Stock Options, Awards and Amortization 225 of Restricted Stock Repurchases of Common Stock (80) (7.000) Cash Dividends ($1.88 per share) (2.530) Other Balance, February 1, 2015 1,768 $88 $8,885 $26.995 $(452) (461) $(26,194) Net Earnings 7,009 Shares Issued Under Employee Stock Plans 73 Tax Effect of Stock-Based Compensation 145 Foreign Currency Translation Adjustments (412) Cash Flow Hedges, net of tax (34) Stock Options, Awards and Amortization 244 of Restricted Stock Repurchases of Common Stock (7.000) Cash Dividends ($2.36 per share) (3.031) Balance, January 31, 2016 1,772 $88 $9.347 $30,973 $(898) (520) $(33,194) Net Earnings 7.957 Shares Issued Under Employee Stock Plans 76 Tax Effect of Stock Based Compensation 97 Foreign Currency Translation Adjustments (3) Cash Flow Hedges, net of tax 34 Stock Options, Awards and Amortization 267 of Restricted Stock Repurchases of Common Stock (53) (7.000) Cash Dividends ($2.76 per share) (3.404) Other (7) Balance, January 29, 2017 1.776 $88 $9,787 $35,519 $(867) (573) (40,194) See aying Notes to Consolidated Financial Staments 73 145 (412) (34) 244 - (59) TIL 1 1 1 (7.000) (3.031) $ 6,316 7.957 76 97 (3) 34 267 11 (7,000) (3.404) $ 4.333 Fiscal Year Ended Jan. 31, 2016 "Fiscal 2015" Feb. 1. 2015 Fiscal 2014" $7.009 $6,345 1,863 244 (144) 1.786 225 (323) (48) (181) (546) (5) 888 109 154 15 (81) (124) (199) 244 146 168 159 (104) 8.242 109 (33) 9.373 (1.503) (1.442) Jan. 29, 2017 amounts in millions Fiscal 2016" CASH FLOWS FROM OPERATING ACTIVITIES: Net Earnings $7.957 Reconciliation of Net Earnings to Net Cash Provided by Operating Activities: Depreciation and Amortization 1,973 Stock-Based Compensation Expense 267 Gain on Sales of Investments Changes in Assets and Liabilities, net of the effects of acquisitions Receivables, net (138) Merchandise Inventories (769) Other Current Assets Accounts Payable and Accrued Expenses 446 Deferred Revenge 99 Income Taxes Payable Deferred Income Taxes (117) Other Net Cash Provided by Operating Activities 9,783 CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures, net of $179, S165 and $217 of non-cash capital (1,621) expenditures in fiscal 2016, 2015 and 2014, respectively Proceeds from Sales of Investments Payments for Businesses Acquired, nct Proceeds from Sales of Property and Equipment 38 Net Cash Used in Investing Activities (1,583) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from Short-Term Borrowings, net 360 Proceeds from Long-Term Borrowings, net of discounts 4.959 Repayments of Long-Term Debt (3,045) Repurchases of Common Stock (6,880) Proceeds from Sales of Common Stock 218 Cash Dividends Paid to Stockholders (3,404) Other Financing Activities (78) Net Cash Used in Financing Activities (7.870) Change in Cash and Cash Equivalents 330 Effect of Exchange Rate Changes on Cash and Cash Equivalents (8) Cash and Cash Equivalents at Beginning of Year 2,216 Cash and Cash Equivalents at End of Year $2.538 SUPPLEMENTAL DISCLOSURE OF CASH PAYMENTS MADE FOR: Interest, net of interest capitalized $ 924 Income Taxes $4,623 (1) Fiscal wars ended January 29, 2017 January 31, 2016 and February 1, 2015 include 52 weeks See accompanying Norto Consolidared Financial Statements 1 144 (1.666) 43 (2.982) 323 (200) 48 (1.271) 60 3.991 (39) (7.000) 228 (3.031) 290 1.981 (39) (7.000) 252 (2,530) (25) 7,071 (100) (106) 1.929 $1,723 (5,787 604 (111) 1.723 $2,216 $ 874 53.853 S782 $3,435 BER 5 Answer the following questions by referring to the financial statements of The Home Depot in Andi A (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016. to January 29, 2017. As with many retail companies. The Home Depot labels the period *Fiscal 2016' even though it ends in the 2017 calendar year. The label 'Fiscal 2016 is appropriate because Fiscal 2016 includes 11 months from the 2016 calendar year. The Home Depot explains its choice of fiscal period in Note to its financial statements) Sipped 1. Where does the company disclose the amount of its Allowance for Doubtful Accounts? (Hint The company refers to its Allowance for Doubtful Accounts as a "Valuation Reserve related to Accounts Receivable) O on the income statement On the statement of cash flows. O on both the income statement and balance sheet in the notes to the financial statements. 2. Compute the company's receivables tumover ratio and days to collect for the year ended January 29, 2017 (Use 365 days in a year) 46.6 times and 28 days 75 times and 48.7 days 0 12.2 times and 30,0 days 48.3 times and 76 days