financial statements of Lowe's Companies, Incorporated in Appendix B. (Note: Fiscal 2019 for Lowe's runs from February 2, 2019, to January 31, 2020.) Required: 1. The total cost of Property is $35,945 (million) at January 31, 2020. Use this information, along with other data reported on the balance sheet, to determine the amount of Accumulated Depreciation at January 31, 2020. What percentage is this of the total cost of property? $17,276 (million); 48.1% $54,614 (million); 151.9% $18.432 (million): 51.3% O $1,262 (million) : 3.5% 2. What amount of Depreciation and Amortization Expense was reported for the year ended January 31, 2020? What percentage of net sales is it? O $1,404 (million); 2.1% $1,262 (million); 29.5% O $1,262 (million); 1.7% O $1,477 (million); 2.1% 3. What is the fixed asset turnover ratio for the year ended January 31, 2020? 01.94 3.89 4.29 57.17 APPENDIX B Excerpts from the Fiscal 2019 10-K Annual Report of Lowe's Companies, Inc. LOWE'S COMPANIES, INC. CONSOLIDATED STATEMENTS OF EARNINGS (In millions, except per share and percentage data) Fiscal Years Ended January 31, 2020 "Fiscal 2019") % Sales February 1, 2019 "Fiscal 2018" % Sales February 2, 2018 "Fiscal 2017" % Sales Net sales $72,148 100.00% $71,309 100.00% $68,619 100.00% Cost of sales 49,205 68.20 48,401 67.88 46,185 67.31 Gross margin 22,943 31.80 22,908 32.12 22,434 32.69 Expenses: Selling, general and administrative 15,367 [21.30 17,413 24.41 14,444 21.04 Depreciation and amortization 1,262 1.75 1,477 2.07 1,404 2.05 Operating income 6,314 8.75 4,018 5.64 6,586 9.60 Interest-net 691 0.96 624 0.88 633 0.92 Loss on extinguishment of debt 4641 0.68 Pre-tax carnings 5,623 7.79 3,394 4.76 5,489 8.00 Income tax provision 1,342 1.86 1,080 1.52 2,042 2.98 Net earnings $ 4,281 5.93% $ 2,314 3.24% $ 3,447 5.02% Basic earnings per common share $ 5.49 $ 2.84 $ 4.09 Diluted earnings per common share $ 5.49 $ 2.84 $ 4.09 Cash dividends per share $ 2.13 $ 1.85 $ 1.58 (In millions, except percentage data) Fiscal Years Ended Net carnings Foreign currency translation adjustments net of tax Other Other comprehensive income/(loss) Comprehensive income LOWE'S COMPANIES, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME January 31, 2020 "Fiscal 2019" $4,281 94 % Sales 5.93% 0.13 February 1, 2019 "Fiscal 2018" % Sales February 2, 2018 "Fiscal 2017" % Sales $2,314 3.24% $3,447 5.02% (221) (0.30) 251 0.37 (21) (0.03) 73 0.10 (220) (0.30) 251 0.37 $4,354 6.03% $2,094 2.94% $3,698 5.39% See accompanying notes to consolidated financial statements. MacBook Pro B5 (In millions, except par value). LOWE'S COMPANIES, INC. CONSOLIDATED BALANCE SHEETS January 31, 2020 February 1, 2019 Assets Current assets: Cash and cash equivalents Short-term investments $ 716 160 Merchandise inventory-net 13,179 $ 511 218 12,561 Other current assets 1,263 938 Total current assets 15,318 Property, less accumulated depreciation 18,669 14,228 18,432 Operating lease right-of-use assets 3,891 Long-term investments 372 256 Deferred income taxes-net 216. 294 Goodwill Other assets 303 303 702 995 Total assets $39,471 $34,508 Liabilities and shareholders' equity Current liabilities: Short-term borrowings t $1,941 $ 722 Current maturities of long-term debt 597 1.110 Current operating lease liabilities 501 Accounts payable 7,659 8,279 Accrued compensation and employee benefits 684 662 Deferred revenue 1,219 1,299 Other current liabilities: 2,581 2,425 Total current liabilities 15,182 14,497 Long-term debt, excluding current maturities 16,768 14,391 Noncurrent operating lease liabilities 3,943 Deferred revenue extended protection plans 894 827 Other liabilities 712 1,149 Total liabilities 37,499 30,864 Commitments and contingencies Shareholders' equity: Preferred stock-$5 par value, none issued Common stock $0.50 par value; Shares issued and outstanding January 31, 2020 February 1, 2019 Capital in excess of par value Retained earnings Accumulated other comprehensive loss Total shareholders' equity Total liabilities and shareholders' equity See accompanying noter to consolidated financial statements. 763 801 381 401 1,727 3,452 (136) (209) 1,972 3,644 $39,471 $34,508 APPENDIX B Excerpts from the Fiscal 2019 10-K Annual Report of Lowe's Companies, Inc. LOWE'S COMPANIES, INC. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except per share data) Accumulated Other Common Stock Shares Amount Capital in Excess of Par Value Retained Comprehensive Total Shareholders' Earnings Income/(Loss) Equity Balance February 3, 2017 Net earnings Other comprehensive income Cash dividends declared, $1.58 per share Share-based payment expense 866 $433 $6,241 $(240) $ 6,434 3,447 3,447 251 251 (1,324) (1,324) 99 99 Repurchase of common stock (40) (20) (215) (2,939) (3.174) Issuance of common stock under share-based payment plans 4 2 138 140 Balance February 2, 2018 830 $415 $ 22 $5,425 $ 11 $ 5,873 Cumulative effect of accounting change 33 33 Net earnings Other comprehensive loss Cash dividends declared, $1.85 per share Share-based payment expense Repurchase of common stock 2,314 2,314 (220) (220) (1,500) (1,500) 74 74 (32) (16) (209) (2,820) (3,045) Issuance of common stock under share-based payment plans Balance February 1, 2019 3 2 113 115 801 $401 $ - $3,452 $(209) $ 3,644 Cumulative effect of accounting change Net earnings Other comprehensive income Cash dividends declared, $2.13 per share Share-based payment expense Repurchase of common stock (263) (263) 4,281 4,281 73 73 (1,653) (1,653) (41) (21) 98 (214) 98 (4,090) (4,325) share-based payment plans Issuance of common stock under Balance January 31, 2020 3 116 117 763 $381 $ $1,727 $(136) $ 1,972 See accompanying notes to consolidated financial statements. B7