Assume that you are the credit manager of a medium-size supplier of building materials and related products. Home Depot wants to make credit purchases from your company, with payment due in 60 days.

Instructions:

a-1. Compute the current ratio for the fiscal years ending February 3, 2019, and January 28, 2018.

a-2. Compute the quick ratio for the fiscal years ending February 3, 2019, and January 28, 2018.

a-3. Compute the amount of working capital for the fiscal years ending February 3, 2019, and January 28, 2018.

a-4. Compute the change in working capital from the prior year for the fiscal years ending February 3, 2019, and January 28, 2018.

Required information The following are the balance sheet and consolidated statement of earnings of The Home Depot, Inc. \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{7}{|c|}{THEHOMEDEPOT,INC.CONSOLIDATEDSTATEMENTSOFEARNINGS} \\ \hline & & Fiscal & \multicolumn{2}{|r|}{ Fiscal } & \multicolumn{2}{|c|}{ Fiscal } \\ \hline in millions, except per share data & & 2018 & \multicolumn{2}{|r|}{2017} & \multicolumn{2}{|c|}{2016} \\ \hline Net sales & & $66,178 & \multicolumn{2}{|c|}{$71,306} & \multicolumn{2}{|c|}{$77,361} \\ \hline Cost of Sales & & 43,760 & \multicolumn{2}{|r|}{47,296} & \multicolumn{2}{|c|}{51,333} \\ \hline Gross profit & & 22,418 & \multicolumn{2}{|r|}{24,010} & \multicolumn{2}{|r|}{26,028} \\ \hline \multicolumn{7}{|l|}{ Operating Expenses: } \\ \hline Selling, General and Administrative & & 15,900 & \multicolumn{2}{|r|}{17,827} & \multicolumn{2}{|c|}{17,037} \\ \hline Depreciation and Amortization & & 1,688 & \multicolumn{2}{|r|}{1,769} & \multicolumn{2}{|r|}{1,685} \\ \hline Impairment loss & & 257 & \multicolumn{2}{|r|}{-} & \multicolumn{2}{|r|}{-} \\ \hline Total Operating Expenses & & 17,845 & \multicolumn{2}{|r|}{19,596} & \multicolumn{2}{|r|}{18,722} \\ \hline Operating income & & 4,573 & \multicolumn{2}{|r|}{4,414} & \multicolumn{2}{|r|}{7,306} \\ \hline \multicolumn{7}{|l|}{ Interest and Other (Income) Expense: } \\ \hline Interest and Investment Income & & (20) & & (20) & & (78) \\ \hline Interest Expense & & 666 & & 607 & & 684 \\ \hline Other & & 160 & & - & & - \\ \hline Interest and other, net & & 806 & & 587 & & 606 \\ \hline Earnings before provision for income taxes & & 3,767 & & 3,827 & & 6,700 \\ \hline Provision for Income Taxes & & 1,343 & & 1,259 & & 2,400 \\ \hline Net earnings & $ & 2,424 & $ & 2,568 & $ & 4,300 \\ \hline Basic weighted average common shares & & 1,579 & & 1,642 & & 1,728 \\ \hline Basic earnings per share & $ & 1.54 & $ & 1.56 & $ & 2.49 \\ \hline Diluted weighted average common shares & & 1,591 & & 1,650 & & 1,589 \\ \hline Diluted earnings per share & $ & 1.52 & $ & 1.56 & $ & 2.71 \\ \hline \end{tabular} Fiscal 2018 includes 53 weeks. Fiscal 2017 and fiscal 2016 include 52 weeks