Comprehensive Problem 4 The following are the consolidated statement of earnings and the balance sheet of Home Depot, Inc and Subsidiaries THE HOME DEPOT, INC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS Fiscal Year Ended (1) amounts in millions, except per share data January 31,2016 February 1, 2015 February 2, 2014 NET SALES $ 66,192 $ 71,299 $ 77,359 Cost of Sales 43,752 47,292 51,341 GROSS PROFIT 22,440 24,007 26,018 Operating Expenses Selling, General and Administrative 15,886 17,828 17,051 Depreciation and Amortization 1,703 1,770 1,692 Total Operating Expenses 17,589 19,598 18,743 OPERATING INCOME 4,851 4,409 7,275 Interest and Other (Income) Expense Interest and Investment Income (27 ) (27 ) (87 ) Interest Expense 660 616 686 Other (152 ) 152 Interest and Other, net 785 741 599 EARNINGS BEFORE PROVISION FOR INCOME TAXES 4,066 3,668 6,676 Provision for Income Taxes 1,361 1,259 2,409 NET EARNINGS $ 2,705 $ 2,409 $ 4,267 Weighted Average Common Shares 1,579 1,642 1,728 BASIC EARNINGS PER SHARE $ 1 71 $ 1 65 $ 2 47 Diluted Weighted Average Common Shares 1,591 1,650 1,589 DILUTED EARNINGS PER SHARE $ 1 70 $ 1 46 $ 2 69 (1) Fiscal years ended January 31, 2016, February 1, 2015 and February 2, 2014 include 52 weeks THE HOME DEPOT, INC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS amounts in millions, except share and per share data January 31, 2016 February 1, 2015 ASSETS Current Assets Cash and Cash Equivalents $ 1,276 $ 1,238 Receivables, net 980 975 Merchandise Inventories 10,253 10,743 Other Current Assets 1,334 1,198 Total Current Assets 13,843 14,154 Property and Equipment, at cost 37,401 36,565 Less Accumulated Depreciation and Amortization 11,785 10,168 Net Property and Equipment 25,616 26,397 Goodwill 1,177 1,134 Other Assets 227 406 Total Assets $ 40,863 $ 42,091 LIABILITIES AND STOCKHOLDERS EQUITY Current Liabilities Short Term Debt $ 370 $ 560 Accounts Payable 5,443 4,807 Accrued Salaries and Related Expenses 1,250 1,127 Sales Taxes Payable 343 330 Deferred Revenue 1,152 1,149 Income Taxes Payable 104 286 Current Installments of Long Term Debt 1,013 1,759 Other Accrued Expenses 1,575 1,643 Total Current Liabilities 11,250 11,661 Long Term Debt, excluding current installments 8,661 9,650 Other Long Term Liabilities 2,131 2,196 Deferred Income Taxes 1,152 1,149 Total Liabilities 23,194 24,656 STOCKHOLDERS EQUITY Common Stock, par value $0 05 authorized 10 billion shares issued 1 754 billion shares at January 31, 2016 and 1 733 billion shares at February 1, 2015 outstanding 1 484 billion shares at January 31, 2016 and 1 537 billion shares at February 1, 2015 82 81 Paid In Capital 6,294 6,031 Retained Earnings 11,529 11,784 Accumulated Other Comprehensive Income 355 87 Treasury Stock, at cost, 270 million shares at January 31, 2016 and 196 million shares at February 1, 2015 (591 ) (374 ) Total Stockholders Equity 17,669 17,435 Total Liabilities and Stockholders Equity $ 40,863 $ 42,091 Selected information as on February 2, 2014 Working capital $ 2,668 Cash balance $ 1,280 Total assets $ 44,404 Stockholders' equity $ 17,684 rev 04 07 2020 QC CS 207273, CS 207274 Comprehensive Problem 4 Part 2 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 January 31, 2016, and February 1, 2015 a 2 Compute the quick ratio for the fiscal years ending January 31, 2016, and February 1, 2015 a 3 Compute the amount of working capital for the fiscal years ending January 31, 2016, and February 1, 2015 a 4 Compute the percentage change in working capital from the prior year for the fiscal years ending January 31, 2016, and February 1, 2015 a 5 Compute the percentage change in cash and cash equivalents from the prior year for the fiscal years ending January 31, 2016, and February 1, 2015

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Comprehensive Problem 4 The following are the consolidated statement of earnings and the balance sheet of Home Depot, Inc and Subsidiaries. THE HOME DEPOT, INC.

Comprehensive Problem 4

The following are the consolidated statement of earnings and the balance sheet of Home Depot, Inc and Subsidiaries.

THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS
	Fiscal Year Ended⁽¹⁾
amounts in millions, except per share data	January 31,2016			February 1, 2015			February 2, 2014
NET SALES	$	66,192		$	71,299		$	77,359
Cost of Sales		43,752			47,292			51,341
GROSS PROFIT		22,440			24,007			26,018
Operating Expenses:
Selling, General and Administrative		15,886			17,828			17,051
Depreciation and Amortization		1,703			1,770			1,692
Total Operating Expenses		17,589			19,598			18,743
OPERATING INCOME		4,851			4,409			7,275
Interest and Other (Income) Expense:
Interest and Investment Income		(27	)		(27	)		(87	)
Interest Expense		660			616			686
Other		(152	)		152
Interest and Other, net		785			741			599
EARNINGS BEFORE PROVISION FOR INCOME TAXES		4,066			3,668			6,676
Provision for Income Taxes		1,361			1,259			2,409
NET EARNINGS	$	2,705		$	2,409		$	4,267
Weighted Average Common Shares		1,579			1,642			1,728
BASIC EARNINGS PER SHARE	$	1.71		$	1.65		$	2.47
Diluted Weighted Average Common Shares		1,591			1,650			1,589
DILUTED EARNINGS PER SHARE	$	1.70		$	1.46		$	2.69

⁽¹⁾ Fiscal years ended January 31, 2016, February 1, 2015 and February 2, 2014 include 52 weeks.

THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
amounts in millions, except share and per share data	January 31, 2016			February 1, 2015
ASSETS
Current Assets:
Cash and Cash Equivalents	$	1,276		$	1,238
Receivables, net		980			975
Merchandise Inventories		10,253			10,743
Other Current Assets		1,334			1,198
Total Current Assets		13,843			14,154
Property and Equipment, at cost		37,401			36,565
Less Accumulated Depreciation and Amortization		11,785			10,168
Net Property and Equipment		25,616			26,397
Goodwill		1,177			1,134
Other Assets		227			406
Total Assets	$	40,863		$	42,091
LIABILITIES AND STOCKHOLDERS EQUITY
Current Liabilities:
Short-Term Debt	$	370		$	560
Accounts Payable		5,443			4,807
Accrued Salaries and Related Expenses		1,250			1,127
Sales Taxes Payable		343			330
Deferred Revenue		1,152			1,149
Income Taxes Payable		104			286
Current Installments of Long-Term Debt		1,013			1,759
Other Accrued Expenses		1,575			1,643
Total Current Liabilities		11,250			11,661
Long-Term Debt, excluding current installments		8,661			9,650
Other Long-Term Liabilities		2,131			2,196
Deferred Income Taxes		1,152			1,149
Total Liabilities		23,194			24,656
STOCKHOLDERS EQUITY
Common Stock, par value $0.05; authorized: 10 billion shares; issued: 1.754 billion shares at January 31, 2016 and 1.733 billion shares at February 1, 2015; outstanding: 1.484 billion shares at January 31, 2016 and 1.537 billion shares at February 1, 2015		82			81
Paid-In Capital		6,294			6,031
Retained Earnings		11,529			11,784
Accumulated Other Comprehensive Income		355			87
Treasury Stock, at cost, 270 million shares at January 31, 2016 and 196 million shares at February 1, 2015		(591	)		(374	)
Total Stockholders Equity		17,669			17,435
Total Liabilities and Stockholders Equity	$	40,863		$	42,091

Selected information as on February 2, 2014:


Working capital	$	2,668
Cash balance	$	1,280
Total assets	$	44,404
Stockholders' equity	$	17,684

rev: 04_07_2020_QC_CS-207273, CS-207274

Comprehensive Problem 4 Part 2

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 January 31, 2016, and February 1, 2015.

a-2. Compute the quick ratio for the fiscal years ending January 31, 2016, and February 1, 2015.

a-3. Compute the amount of working capital for the fiscal years ending January 31, 2016, and February 1, 2015.

a-4. Compute the percentage change in working capital from the prior year for the fiscal years ending January 31, 2016, and February 1, 2015.

a-5. Compute the percentage change in cash and cash equivalents from the prior year for the fiscal years ending January 31, 2016, and February 1, 2015.