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Company: The Home Depot, Inc. Data for the year ended December 31, 2023: Item Amount Revenue $120,000,000,000 Cost of Goods Sold $80,000,000,000 Operating Expenses

Company: The Home Depot, Inc.
 Data for the year ended December 31, 2023:

Item

Amount

Revenue

$120,000,000,000

Cost of Goods Sold

$80,000,000,000

Operating Expenses

$30,000,000,000

Income Tax Expense

$10,000,000,000

Net Income

$20,000,000,000

Total Assets

$150,000,000,000

Total Liabilities

$80,000,000,000

Shareholders' Equity

$70,000,000,000

Requirements:

  1. Calculate The Home Depot's gross profit margin.
  2. Determine The Home Depot's operating profit margin.
  3. Analyze the impact of income tax expense on The Home Depot's net income.
  4. Evaluate how The Home Depot recognizes revenue from retail sales.
  5. Explain the significance of the Income Measurement Objective in The Home Depot's financial strategy.
  6. Discuss The Home Depot's inventory turnover ratio and accounts payable turnover ratio.
  7. Analyze the impact of The Home Depot's financial performance on its expansion into online retail.

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