breakdown of comprehensive problem 4 pgs 682-683 of financial and managerial accounting 18th edition

Home Depot, Inc. ANALYSIS OF OWNED CORPORATION THE FINANCIAL STATEMENTS OF A PU 5 f s Comprehensive Problem is to acquaint you with the content of the 201 ments of Home Depot, Inc, reproduced in Appendix A of this textbook. (Thel tements are for the fiscal year ended January 31, 2016 ) The problem the201 St.- parts, which are independent of one another: Part I is designed to famlihre eneral contents of a company's financial statements; Part II involve pany's liquidity; and Art ? analyzes the trend in its profitability th ents: Part II involves analysis of the u the ' you work this problem as a group assignment, each group member should be discuss the group's findings and conclusions in class A good starting point for understanding the financial statements of a Home Depot, Inc., is to understand the accounting policies used in preparipany s ments. The first note accompanying the financial statements provides a bricf the major accounting policies the company used. Most of the areas discussed inthcp used in preparing those sate- been covered in this text. Part I Annual reports include not only comparative financial statements but a sources of information, such as: . A muliyear summary of financial highlights, a summary of key statistics for the pas years. Several pages of Notes that accompany the financial statements. Reports by management and by the independent auditors in which th respective responsibilities for the financial statements Instructions Answer each of the following questions and explain where in the statements, notes, or other sections of the annual report you located the information used in your answer a. How many years are covered in each of the primary comparative financial statements? Were all of these statements audited? Name the auditors. What were the auditors' conclusions co- cerning these statements? Home Depot, Inc., combines its statement of retained earnings with another financial state- ment. Where are details about changes in the amount of retained earnings found? Over the three years presented, have the company's annual net cash flows been positive or negative from (1) operating activities, (2) investing activities, and (3) financing activities? Has the company's cash balance increased or decreased during each of these three years? b. c. PartlI1 Assume that you are the credit manager of a medium-size supplier of building mate- rials and related products. Home Depot wants to make credit purchases from your company, with payment due in 60 days. a. As general background, read the first note to the financial statements, "Summary of Significant Accounting Policies." Next, compute the following for the fiscal years ending January 2016, and February 1, 2015 (round percentages to the nearest tenth of 1 percent, and other computations to one decimal place) 1. Current ratio. 31 2. 3. Amount of working capital. ratio, Home Depot, Inc. ANALYSIS OF OWNED CORPORATION THE FINANCIAL STATEMENTS OF A PU 5 f s Comprehensive Problem is to acquaint you with the content of the 201 ments of Home Depot, Inc, reproduced in Appendix A of this textbook. (Thel tements are for the fiscal year ended January 31, 2016 ) The problem the201 St.- parts, which are independent of one another: Part I is designed to famlihre eneral contents of a company's financial statements; Part II involve pany's liquidity; and Art ? analyzes the trend in its profitability th ents: Part II involves analysis of the u the ' you work this problem as a group assignment, each group member should be discuss the group's findings and conclusions in class A good starting point for understanding the financial statements of a Home Depot, Inc., is to understand the accounting policies used in preparipany s ments. The first note accompanying the financial statements provides a bricf the major accounting policies the company used. Most of the areas discussed inthcp used in preparing those sate- been covered in this text. Part I Annual reports include not only comparative financial statements but a sources of information, such as: . A muliyear summary of financial highlights, a summary of key statistics for the pas years. Several pages of Notes that accompany the financial statements. Reports by management and by the independent auditors in which th respective responsibilities for the financial statements Instructions Answer each of the following questions and explain where in the statements, notes, or other sections of the annual report you located the information used in your answer a. How many years are covered in each of the primary comparative financial statements? Were all of these statements audited? Name the auditors. What were the auditors' conclusions co- cerning these statements? Home Depot, Inc., combines its statement of retained earnings with another financial state- ment. Where are details about changes in the amount of retained earnings found? Over the three years presented, have the company's annual net cash flows been positive or negative from (1) operating activities, (2) investing activities, and (3) financing activities? Has the company's cash balance increased or decreased during each of these three years? b. c. PartlI1 Assume that you are the credit manager of a medium-size supplier of building mate- rials and related products. Home Depot wants to make credit purchases from your company, with payment due in 60 days. a. As general background, read the first note to the financial statements, "Summary of Significant Accounting Policies." Next, compute the following for the fiscal years ending January 2016, and February 1, 2015 (round percentages to the nearest tenth of 1 percent, and other computations to one decimal place) 1. Current ratio. 31 2. 3. Amount of working capital. ratio