Consolidated Statements of Earnings Fiscal Year Ended) Jan. 31, 2016 Jan. 29, 2017 "Fiscal 2016" Feb. 1,2015 6 "Fiscal 2015" amounts in millions, except per share data NET SALES Cost of Sales GROSS PROFIT Operating Expenses: "Fiscal 2014" S83,176 54,787 28,389 $94,595 62,282 32,313 $88,519 58,254 30,265 17,132 1,754 18,886 13,427 Selling. General and Administrative 16,801 1,690 18,491 11,774 16,280 1,640 17,920 10,469 Total Operating Expenses OPERATING INCOME Interest and Other (Income) Expense: Interest and Investment Income (36) 972 936 12,491 4,534 7957 1,229 $ 6.47 1,234 $ 6.45 (166) 919 753 11,021 4,012 7,009 1,277 $ 5.49 1,283 $ 5.46 (337) 830 493 9,976 3,631 6,345 1,338 $4.74 1,346 S 4.71 Interest Expense Interest and Other, net EARNINGS BEFORE PROVISION FOR INCOME TAXES Provision for Income Taxes NET EARNINGS Weighted Average Common Shares BASIC EARNINGS PER SHARE Diluted Weighted Average Common Shares DILUTED EARNINGS PER SHARE (I) Fiscal years ended January 29, 2017, January 3I, 2016, and February I, 2015 include 52 weeks. THE HOME DEPOT, INC. AND SUBSIDIARIES Fiscal Year Ended) Jan. 31,2016 "Fiscal 2015" $7,009 Jan. 29, 2017 "Fiscal 2016" amounts in millions Feb. 1,2015 "Fiscal 2014" S6,345 Net Earnings $7,957 Other Comprehensive Income (Loss): (412) (34) (510) Foreign Currency Translation Adjustments Cash Flow Hedges, net of tax Other 34 31 446 498) Total Other Comprehensive Income (Loss) () $7.988 COMPREHENSIVE INCOME $6,563 $5,847 (I) Fiscal years ended January 29, 2017, January 3I, 2016, and February I, 2015 include 52 weeks. Notes to Consolidated Financial Statements THE HOME DEPOT, INC. AND SUBSIDIARIES Consolidated Statements of Stockholders' Equity on Stock Treasury Stock Stockholders Paid-In Retained Comprehensive Capital amounts in millions, except per share data Shares Balance, February 2, 2014 Net Earnings Shares Issued Under Employee Stock Plans 7 Tax Effect of Stock-Based Compensation Foreign Currency Translation Adjustments_ Cash Flow Hedges, net of tax Stock Options, Awards and Amortization Amount Earnings Income (Loss) $ 46 Shares Equity (381) $(19,194) $12,522 6,345 122 136 Amount 1,761 $88 $8,402 $23,180 6.345 122 136 of Restricted Stock Repurchases of Common Stock Cash Dividends (S1.88 per share) (80)(7.000) (7000) (2,530) (2,530) 1,768 $88 $8,885 $26,995 7,009 $(452) (461) $(26,194)$9,322 7,009 73 145 (412) (34) 244 Balance, February 1,2015 Net Earnings Shares Issued Under Employee Stock Plans4 Tax Effect of Stock-Based Compenstion _ Foreign Currency Translation Adjustments_ Cash Flow Hedges, net of tax Stock Options, Awards and Amortization 73 145 (412) (34) 244 of Restricted Stock Repurchases of Common Stock Cash Dividends (S2.36 per share) Balance, January 31,2016 Net Earnings Shares Issued Under Employee Stock Plans4 Tax Effect of Stock-Based Compenstion _ Foreign Currency Translation Adjustments_ Cash Flow Hedges, net of tax Stock Options, Awards and Amortization (59) (7,000 7,000) (3,031) (3,031) 1,772 $88 $9,347 $30,973 7,957 $(898) (520) $(33,194) 6,316 7,957 76 97 97 34 34 267 267 of Restricted Stock Repurchases of Common Stock Cash Dividends (S2.76 per share) (53) (7,000 7,000) (3,404) (3,404) S(867)573) 1,776 $88 $9,787 $35,519 (573) $(40,194) 4,33:3 Balance, January 29, 2017 See accompanying Notes to OME Consolidated Statements of Cash Flows Fiscal Year Ended) Jan. 31, 2016 "Fiscal 2015" Jan. 29, 2017 "Fiscal 2016" Feb. 1, 2015 "Fiscal 2014" amounts in millions CASH FLOWS FROM OPERATING ACTIVITIES: Net Earnings Reconciliation of Net Earnings to Net Cash Provided by Operating Activities: $7,957 $7,009 S6,345 1,786 (323) 1,973 267 1,863 244 (144) Stock-Based Compensation Expense Gain on Sales of Investments Changes in Assets and Liabilities, net of the effects of acquisitions: Receivables, net Merchandise Inventories Other Current Assets Accounts Payable and Accrued Expenses Deferred Revenue Income Taxes Payable Deferred Income Taxes Other (138) (181) (546) (124) (199) 244 146 168 159 104 (48) 446 109 154 15 (117) 9,783 Net Cash Provided by Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures, net of $179, $165 and S217 of non-cash capital expenditures in fiscal 2016, 2015 and 2014, respectively Proceeds from Sales of Investments (1,621) (1,503) (1,442) 323 (200) 48 144 Payments for Businesses Acquired, net Proceeds from Sales of Property and Equipment (1,666) 43 982 Net Cash Used in Investing Activities 1,583) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from Short-Term Borrowings, net Proceeds from Long-Term Borrowings, net of discounts Repayments of Long-Term Debt Repurchases of Common Stock Proceeds from Sales of Common Stock Cash Dividends Paid to Stockholders Other Financing Activities 60 3,991 (39) (7,000) 290 1,981 (39) (7,000) 4,959 (3,045) (6,880) (3,404) (3,031) (2,530) Net Cash Used in Financing Activities 071 (100) (106) 1,929 S1,723 Change in Cash and Cash Equivalents Effect of Exchange Rate Changes on Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year SUPPLEMENTAL DISCLOSURE OF CASH PAYMENTS MADE FOR: Interest, net of interest capitalized Income Taxes 330 1,723 $2,216 $2,538 S 874 $3,853 $ 924 $4,623 S 782 $3,435 Refer to the financial statements of The Home Depot in Appendix A at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 201 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 1 to its financial statements.) Required: 1. What were the year-end dates for the "Fiscal 2016" and "Fiscal 2015" periods? Fiscal 2016 Fiscal 2015 February 1, 2015 a. January 31, 2016 b. December 31, 2016 December 31, 2015 c. January 31, 2016 d. January 29, 2017 January 31, 2015 January 31, 2016 Option A Option B Option C Option D 2. which of the following are the amounts in the company's accounting equation (A = L + SE) for the 2016 fiscal year-end? $94,595 $62,282+$32,313 $42,966 $38,633+$4,333 $41,973 $35,657$6,316 $81,599 $38,633+$42,966 3. What is the company's current ratio at January 29, 2017? 0.80 1.25 0.41 01.11 4. What does the company's current ratio in requirement 3 indicate? The company has more than one dollar of current assets for every dollar of current liabilities due in the next year. The company has less than one dollar of current assets for every dollar of current liabilities due in the next year. Less than half of the company's assets are current Less than half of the company's liabilities are current