I am going to give this one more try. On Monday I used this and got an F on my assignment. :( Please only accept if accounting is your fortay because it isn't mine. I have attached the documents necessary for the LOWE's homework assignment, including a 10K statement. Please use LOWE's only for calculations. The attached EXAMPLES for Home Depot are so you know what is expected for the HW- please do not use those numers for the HW just how the ratios and summaries are expected. Please do it in word document but ALSO attach your excel sheet so I can practice on my own later PLEASE. I greatly appreciate your time and hope this is a better experience.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 30, 2015 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to _________ Commission file number 1-7898 LOWE'S COMPANIES, INC. (Exact name of registrant as specified in its charter) NORTH CAROLINA (State or other jurisdiction of incorporation or organization) 56-0578072 (I.R.S. Employer Identification No.) 1000 Lowe's Blvd., Mooresville, NC (Address of principal executive offices) 28117 (Zip Code) Registrant's telephone number, including area code 704-758-1000 Securities registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange on which registered Common Stock, $0.50 Par Value New York Stock Exchange (NYSE) Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. x Yes o No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. o Yes x No Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes o No Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). x Yes o No Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. x Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of \"large accelerated filer,\" \"accelerated filer,\" and \"smaller reporting company\" in Rule 12b-2 of the Exchange Act. (Check one): Large accelerated filer x Accelerated filer o Non-accelerated filer o Smaller reporting company o Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). o Yes x No As of August 1, 2014, the last business day of the Company's most recent second quarter, the aggregate market value of the registrant's common stock held by non-affiliates of the registrant was $47.1 billion based on the closing sale price as reported on the New York Stock Exchange. Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date. CLASS OUTSTANDING AT March 27, 2015 Common Stock, $0.50 par value 951,704,640 DOCUMENTS INCORPORATED BY REFERENCE Document Parts Into Which Incorporated Portions of the Proxy Statement for Lowe's 2015 Annual Meeting of Shareholders Part III LOWE'S COMPANIES, INC. - TABLE OF CONTENTS Page No. PART I Item 1. Item 1A. Item 1B. Item 2. Item 3. Item 4. Business Risk Factors Unresolved Staff Comments Properties Legal Proceedings Mine Safety Disclosures Executive Officers and Certain Significant Employees of the Registrant 4 9 13 13 13 13 14 PART II Item 5. Item 6. Item 7. Item 7A. Item 8. Item 9. Item 9A. Item 9B. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Selected Financial Data Management's Discussion and Analysis of Financial Condition and Results of Operations Quantitative and Qualitative Disclosures About Market Risk Financial Statements and Supplementary Data Changes in and Disagreements with Accountants on Accounting and Financial Disclosure Controls and Procedures Other Information 15 16 17 29 31 60 60 60 PART III Item 10. Item 11. Item 12. Item 13. Item 14. Directors, Executive Officers and Corporate Governance Executive Compensation Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Certain Relationships and Related Transactions, and Director Independence Principal Accountant Fees and Services 61 61 61 61 61 PART IV Item 15. Exhibits and Financial Statement Schedules 62 Signatures 71 Table of Contents Part I Item 1 - Business General Information Lowe's Companies, Inc. and subsidiaries (the Company or Lowe's) is a Fortune 100 company and the world's second largest home improvement retailer. As of January 30, 2015, Lowe's operated 1,840 home improvement and hardware stores, representing approximately 201 million square feet of retail selling space. Lowe's is comprised of 1,793 stores located across 50 U.S. states, including 74 Orchard Supply Hardware (Orchard) stores in California and Oregon, as well as 37 stores in Canada, and 10 stores in Mexico. Lowe's was incorporated in North Carolina in 1952 and has been publicly held since 1961. The Company's common stock is listed on the New York Stock Exchange - ticker symbol \"LOW\". See Item 6, \"Selected Financial Data\ACT 5140 - Accounting for Decision Makers HW #1 (Appendix A) Question #1 Using the accompanying financial statements (Excel Workbook), assess The Home Depot concerning liquidity, solvency, profitability, and stock performance. For each area, you should calculate the ratios we discussed in class and provide a brief analysis of the ratios calculated. You do not need to perform vertical analysis for this assignment. I include historical stock price information and outstanding common share information below. You do not need to look beyond the financial statements to complete this assignment. Fiscal Year Ended 2/1/2015 Adjusted Closing Price $106.36 Common Shares Outstanding (millions) 1,307 2/2/2014 $76.20 2/3/2013 $67.62 1/29/2012 $44.73 1,380 1,486 1,523 Liquidity Fiscal Year Ended Current ratio Working capital Acid-test ratio Inventory turnover (times) Days sales in inventory Accounts receivable turnover (times) Days sales in receivables Free cash flow 2/1/2015 1.36 $4,033 0.28 4.90 74.51 57.72 6.32 $6,800 2/2/2014 1.42 $4,530 0.31 4.72 77.25 56.44 6.47 $6,239 2/3/2013 1.34 $3,910 0.34 4.65 78.49 56.63 6.45 $5,663 Average inventory Average A/R $11,068.0 $1,441.0 1/29/2012 1.55 $5,144 0.34 $10,883.5 $10,517.5 $1,396.5 $1,320.0 $5,430 Assessment: HD's liquidity is excellent. The company should not have any trouble paying its short-term liabilities. Current liabilities increased by a higher percentage and higher absolute dollar amount than did current assets, leading to a decrease in the current ratio and in working capital. However, both figures are quite strong. Inventory levels have been fairly flat over the period, even as sales have increased. This indicates good inventory management. The large differences between the current and acid-test ratios is not a surprise, given that HD is in the retail industry. The acid-test ratio decreased because of a decrease in cash on hand, but HD still has a considerable amount of cash. This is partly because of the increase in free cash flow. What is notable is that free cash flow increased despite an increase in capital expenditures. This is because of an increase in cash flow from operating activities. The reduction in days sales in inventory is great, especially since GM% has increased (see below). One way to sell inventory faster is to cut prices, but it does not appear that HD has done this. The days sales in receivables slightly decreased in the current year. HD has so little AR that it does not make a significant difference. The only possible weakness with respect to liquidity is that the current ratio and working capital may be too high, indicating that HD has \"too much\" current assets. This would be a weakness because current assets earn a lower return than do long-term assets. Having said that, liquidity is definitely not a problem for HD. Solvency Fiscal Year Ended Debt to equity Interest coverage 2/1/2015 2.08 12.61 2/2/2014 2/3/2013 1.38 0.67 12.89 12.29 Long term liabilities $19,355 $17,247 $11,845 1/29/2012 0.74 10.99 $13,244 Assessment: HD's solvency is quite strong. Although long-term liabilities and debt-to-equity increased significantly this year, its interest coverage figures the last 4 years are very high, indicating that HD is not having trouble making interest payments. This would allow HD to borrow on very positive terms if it decides to use long-term debt to finance operations, capital expenditures, or other activities. The large increase in debt-to-equity is also caused by the large decrease in equity. Since the decrease in equity results largely from stock buybacks (as opposed to net losses), this is not an area of concern. Profitability Fiscal Year Ended Asset turnover Return on sales Gross margin % Return on assets Return on equity Average interest rate 2/1/2015 $2.07 8.26% 34.81% 17.08% 58.09% 2.83% 2/2/2014 $1.93 7.41% 34.75% 14.31% 35.55% 2.77% 2/3/2013 $1.83 6.60% 34.57% 12.09% 25.42% 2.75% $40,801. $40,801. Average total assets $40,232.0 0 0 Income tax rate 36.40% 36.40% 37.20% Net of tax interest expense $527.90 $452.19 $396.91 Adjusted net income $6,872.9 $5,837.2 $4,931.9 Average equity $10,922.0 $15,149.5 $17,837.5 $29,310. Average total liabilities 0 $25,651.5 $22,963.5 1/29/2012 6.07% 34.47% 36.01% $387.79 $4,270.8 Assessment: HD's profitability is excellent. The significant improvement in asset turnover is good, indicating that HD is not over-saturating its markets. The increase in return on sales indicates that HD is earning more income per dollar of sales than in the past. Another way to interpret this is that income is increasing faster than sales. Either way, it is positive. The increase in GM% (although small) indicates that HD has been able to increase prices faster than the cost of goods has risen. This is what I referenced in the liquidity analysis. ROA and ROE have both improved during the period. The increase in ROE is very impressive. ROA increased because of improvements in return on sales and asset turnover. The fact that ROE is higher than ROA shows that HD is making good use of liabilities (positive financial leverage). In fact, the new liabilities (mentioned in solvency analysis) resulted in an even larger gap between ROE and ROA, providing further benefits to shareholders. The average interest rate paid on liabilities is considerably less than ROA, resulting in positive financial leverage in all three periods. Stock Performance Fiscal Year Ended Book value per common share Earnings per share (basic) Earnings per share (diluted) P/E Ratio Dividend yield Dividend payout 2/1/2015 $7.13 $4.74 $4.71 22.58 1.77% 39.92% 2/2/2014 2/3/2013 $9.07 $11.96 $3.78 $3.03 $3.76 $3.00 20.27 22.54 2.05% 1.72% 41.49% 38.67% Book value of equity Common shares outstanding (millions) Adjusted closing price Dividends per share $9,322 1,307 $106.36 $1.88 $12,522 1,380 $76.20 $1.56 $17,777 1,486 $67.62 $1.16 1/29/2012 $11.75 $2.49 $2.47 18.11 2.33% 42.11% $17,898 1,523 $44.73 $1.04 Assessment: Book value per common share decreased this year. This may seem like cause for concern, but since it decreased because of large stock buy-backs rather than net losses, it is not really a concern. The growing difference between book and market value tells us that investors expect HD to be more of a growth stock than an income stock. This is confirmed by the P/E ratio and the increase in EPS. A P/E of 22.58 is above average (16 is about average), indicating investors expect relatively high stock price growth. In addition, because it increased, investors expect the growth to be faster than last year. \"Income investors\" would probably be disappointed with HD stock, despite the substantial increase in dividends per share in the last couple of years. The increase has not kept pace with the increase in stock price. We know this because of the overall decrease in the dividend yield ratio. I would classify HD as more of a growth stock than an income stock, although the dividend payout percentage is relatively high. HOME DEPOT INC $ in millions Year Ending NET SALES Cost of sales GROSS PROFIT Operating Expenses: Selling, General and Administrative Depreciation and Amortization Total Operating Expenses OPERATING INCOME Interest and Other (Income) Expense: Interest and Investment Income Interest Expense Other 2/1/2015 $83,176 54,222 28,954 2/2/2014 $78,812 51,422 27,390 2/3/2013 $74,754 48,912 25,842 1/29/2012 $70,395 46,133 24,262 16,834 1,651 18,485 10,469 16,597 1,627 18,224 9,166 16,508 1,568 18,076 7,766 16,028 1,573 17,601 6,661 (337) 830 0 (12) 711 0 (20) 632 (67) (13) 606 0 Interest and Other, net Earnings before income taxes Provision for Income Taxes NET EARNINGS 493 9,976 3,631 $6,345 699 8,467 3,082 $5,385 545 7,221 2,686 $4,535 593 6,068 2,185 $3,883 Basic earnings per share Diluted earnings per share $4.74 $4.71 $3.78 $3.76 $3.03 $3.00 $2.49 $2.47 Dividends per share $1.88 $1.56 $1.16 $1.04 HOME DEPOT INC $ in millions As of 2/1/2015 2/2/2014 2/3/2013 1/29/2012 ASSETS Current assets: Cash and cash equivalents Accounts receivable, net Merechandise inventories Other current assets $1,723 1,484 11,079 1,016 $1,929 1,398 11,057 895 $2,494 1,395 10,710 773 $1,987 1,245 10,325 963 Total Current Assets 15,302 15,279 15,372 14,520 Property & Equipment, at cost Less Accumulated Depreciation and Amortization Net Property & Equipment 38,513 15,793 22,720 39,064 15,716 23,348 38,491 14,422 24,069 38,975 14,527 24,448 Goodwill Other assets TOTAL ASSETS 1,353 571 $39,946 1,289 602 $40,518 1,170 473 $41,084 1,120 430 $40,518 LIABILITIES AND SHAREHOLDERS EQUITY Current liabilities: Short-term debt Accounts payable Accrued salaries & related expenses Sales taxes payable Deferred revenue Income taxes payable Current installments of long-term debt Other accrued expenses $290 5,807 1,391 434 1,468 35 38 1,806 $0 5,797 1,428 396 1,337 12 33 1,746 $0 5,376 1,414 472 1,270 22 1,321 1,587 $0 4,856 1,372 391 1,147 23 30 1,557 Total current liabilities 11,269 10,749 11,462 9,376 Long-term debt, excluding current installments Other long-term liabilities Deferred income taxes Total liabilities 16,869 1,844 642 30,624 14,691 2,042 514 27,996 9,475 2,051 319 23,307 10,758 2,146 340 22,620 Shareholders equity: Common stock Paid-in capital Retained earnings Accumulated other comprehensive income (loss) Treasury stock, at cost Total shareholders equity 88 8,885 26,995 (452) (26,194) 9,322 88 8,402 23,180 46 (19,194) 12,522 88 7,948 20,038 397 (10,694) 17,777 87 6,966 17,246 293 (6,694) 17,898 TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $39,946 $40,518 $41,084 $40,518 HOME DEPOT INC $ in millions Year Ending OPERATING ACTIVITIES: Net earnings Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization Stock-based compensation expense Goodwill impairment Changes in Assets and Liabilities, net of the effects of acquisition and disposition Receivables, net Merchandise inventories Other current assets Accounts payable and accrued expenses Deferred revenue Income taxes payable Deferred income taxes Other long-term liabilities Other 2/1/2015 2/2/2014 $6,345 $5,385 $4,535 $3,883 1,786 225 (323) 1,757 228 0 1,684 218 97 1,682 215 0 (81) (124) (199) 244 146 168 159 (152) 48 (15) (455) (5) 605 75 119 (31) 13 (48) (143) (350) 93 698 121 87 107 (180) 8 (170) 256 159 422 (29) 14 170 (2) 51 $8,242 $7,628 $6,975 $6,651 (1,442) 323 0 (200) 48 (1,389) 0 0 (206) 88 (1,312) 0 0 (170) 50 (1,221) 0 101 (65) 56 Net cash used by investing activities FINANCING ACTIVITIES: Proceeds from short-term borrowings, net Proceeds from long-term borrowings, net of discount Repayments of long-term debt Repurchases of common stock Proceeds from sales of common stock Cash dividends paid to stockholders Other financing activities ($1,271) ($1,507) ($1,432) ($1,129) 290 1,981 (39) (7,000) 252 (2,530) (25) 0 5,222 (1,289) (8,546) 241 (2,243) (37) 0 0 (32) (3,984) 784 (1,743) (59) 0 1,994 (1,028) (3,470) 306 (1,632) (218) Net cash used by financing activities ($7,071) ($6,652) ($5,034) ($4,048) Change in Cash and Cash Equivalents Effect of exchange rate changes on cash and cash equivalents ($100) (106) ($531) (34) $509 (2) $1,474 (32) Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 1,929 $1,723 2,494 $1,929 1,987 $2,494 545 $1,987 SUPPLEMENTAL DISCLOSURE OF CASH PAYMENTS MADE FOR Interest, net of capitalized interest Income taxes $782 $3,435 $639 $2,839 $617 $2,482 $580 $1,865 Net cash provided by operating activities INVESTING ACTIVITIES: Capital expenditures Proceeds from sales of investments Proceeds from sale of business Payments for business acquired Proceeds from sales of property & equipment 2/3/2013 1/29/2012 Liquidity Ratios Fiscal Year Ended Current ratio Working capital Acid-test ratio Inventory turnover (times) Days sales in inventory Accounts receivable turnover (times) Days sales in receivables Free cash flow 2/1/2015 1.36 $4,033 0.28 4.90 74.51 57.72 6.32 $6,800 2/2/2014 1.42 $4,530 0.31 4.72 77.25 56.44 6.47 $6,239 2/3/2013 1/29/2012 1.34 1.55 $3,910 $5,144 0.34 0.34 4.65 78.49 56.63 6.45 $5,663 $5,430 Average inventory $11,068.0 $10,883.5 $10,517.5 Average A/R $1,441.0 $1,396.5 $1,320.0 Solvency Ratios Fiscal Year Ended Debt to equity Interest coverage 2/1/2015 2.08 12.61 2/2/2014 1.38 12.89 2/3/2013 1/29/2012 0.67 0.74 12.29 10.99 Long term liabilities $19,355 $17,247 $11,845 $13,244 Profitability Ratios Fiscal Year Ended Asset turnover Return on sales Gross margin % Return on assets Return on equity Average interest rate 2/1/2015 $2.07 8.26% 34.81% 17.08% 58.09% 2.83% 2/2/2014 $1.93 7.41% 34.75% 14.31% 35.55% 2.77% 2/3/2013 1/29/2012 $1.83 6.60% 6.07% 34.57% 34.47% 12.09% 25.42% 2.75% Average total assets $40,232.0 $40,801.0 $40,801.0 Income tax rate 36.40% 36.40% 37.20% 36.01% Net of tax interest expense $527.90 $452.19 $396.91 $387.79 Adjusted net income $6,872.9 $5,837.2 $4,931.9 $4,270.8 Average equity $10,922.0 $15,149.5 $17,837.5 Average total liabilities $29,310.0 $25,651.5 $22,963.5 DuPont Analysis of ROA Fiscal Year Ended Return on assets (calculated) 2/1/2015 17.08% 2/2/2014 14.31% 2/3/2013 12.09% Return on sales Asset turnover Product 8.26% $2.07 17.08% 7.41% $1.93 14.31% 6.60% $1.83 12.09% Stock Ratios Fiscal Year Ended Book value per common share Earnings per share (basic) Earnings per share (diluted) P/E Ratio Dividend yield Dividend payout 2/1/2015 $7.13 $4.74 $4.71 22.58 1.77% 39.92% 2/2/2014 $9.07 $3.78 $3.76 20.27 2.05% 41.49% 2/3/2013 1/29/2012 $11.96 $11.75 $3.03 $2.49 $3.00 $2.47 22.54 18.11 1.72% 2.33% 38.67% 42.11% Book value of equity Common shares outstanding (millions) Adjusted closing price Dividends per share $9,322 1,307 $106.36 $1.88 $12,522 1,380 $76.20 $1.56 $17,777 1,486 $67.62 $1.16 $17,898 1,523 $44.73 $1.04 ACT 5140 - Accounting for Decision Makers Lowes Companies Assignment Directions: Answer all the questions. Please submit your work in Word format only. You can submit an Excel file to support calculations, but please \"cut and paste\" your solutions into the Word file. Be sure to show how you did your calculations. Also, please be sure to include your name at the top of the first page of your file. The assignment is due by 6PM on January 18. Please run spell check and proofread your answers. If you have any questions, please e-mail me at dwobby@nova.edu. Good luck! Part 1 Perform a vertical and horizontal analysis of Lowes Companies income statements and balance sheets as of January 30, 2015. In performing this analysis, consider any notable trends or changes that you observe that may provide useful information concerning its financial condition by calculating past years (go back to 2011). Also use as many years' worth of statements as you feel necessary. You should write up your results in paragraph form. Part 2 Assess Lowes Companies concerning liquidity, solvency, profitability, and stock performance as of January 30, 2015. For each area, you should calculate the ratios we discussed in class and provide an analysis of the ratios calculated. It would also be helpful to compare Lowes's ratios with Home Depot's ratios. I include historical stock price information and outstanding common share information below. Fiscal Year Ended Adjusted Closing Price Common Shares Outstanding (millions) 1/30/2015 $67.01 960 1/31/2014 $45.20 1,030 2/1/2013 $37.06 2/3/2012 $25.53 1,110 1,241 Lowes Companies Inc 10-K Income Statement (Amounts in millions except per share data) Fiscal Year Ended Net Sales Cost of Sales Gross Margin Expenses: Selling, General and Administrative Depreciation Interest - Net Total Expenses Pre-Tax Earnings Income Tax Provision Net Earnings Basic EPS Diluted EPS Dividends Per Share 1/30/2015 1/31/2014 2/1/2013 2/3/2012 $56,223 36,665 19,558 $53,417 34,941 18,476 $50,521 33,194 17,327 $50,208 32,858 17,350 13,281 1,485 516 15,282 4,276 1,578 $2,698 12,865 1,462 476 14,803 3,673 1,387 $2,286 12,244 1,523 423 14,190 3,137 1,178 $1,959 12,593 1,480 371 14,444 2,906 1,067 $1,839 $2.71 $2.71 $0.87 $2.14 $2.14 $0.70 $1.69 $1.69 $0.62 $1.43 $1.43 $0.53 Lowes Companies Inc 10-K Balance Sheet (Amounts in millions except per share data) Fiscal Year Ended ASSETS Current assets: Cash and cash equivalents Short-term investments Merchandise inventories - net Deferred income taxes - net Other current assets Total current assets 1/30/2015 1/31/2014 2/1/2013 2/3/2012 $466 125 8,911 230 348 $10,080 $391 185 9,127 252 341 $10,296 $541 125 8,600 217 301 $9,784 $1,014 286 8,355 183 234 $10,072 Property, less accumulated depreciation Long-term investments Other assets Total assets 20,034 354 1,359 $31,827 20,834 279 1,323 $32,732 21,477 271 1,134 $32,666 21,970 504 1,013 $33,559 LIABILITIES AND SHAREHOLDERS EQUITY Current liabilities: Short-term borrowings Current maturities of long-term debt Accounts payable Accrued compensation & employee benefits Deferred revenue Other current liabilities Total current liabilities $0 552 5,124 773 979 1,920 $9,348 $386 49 5,008 785 892 1,756 $8,876 $0 47 4,657 670 824 1,510 $7,708 $0 592 4,352 613 801 1,533 $7,891 Long-term debt, excluding current maturities Deferred income taxes - net Deferred revenue - extended protection plans Other liabilities Total liabilties 10,815 97 730 869 21,859 10,086 291 730 896 20,879 9,030 455 715 901 18,809 7,035 531 704 865 17,026 Shareholders' equity: Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive income (loss) Total shareholders' equity 480 0 9,591 (103) 9,968 515 0 11,355 (17) 11,853 555 26 13,224 52 13,857 621 14 15,852 46 16,533 $31,827 $32,732 $32,666 $33,559 Total liabilities and shareholders equity Lowes Companies Inc 10-K Statement of Cash Flows (Amounts in millions) Fiscal Year Ended Cash flows from operating activities: Net earnings 1/30/2015 ### 2/1/2013 2/3/2012 $2,698 $2,286 $1,959 $1,839 1,586 (124) 25 57 119 1,562 (162) 64 52 100 1,623 (140) 83 48 100 1,579 54 456 12 107 Changes in operating assets and liabilities: Merchandise inventory - net Other operating assets Accounts payable Other operating liabilities 170 83 127 188 (396) (5) 291 319 (244) (87) 303 117 (33) 125 (5) 215 Net cash provided by operating activities 4,929 4,111 3,762 4,349 Cash flows from investing activities: Purchases of investments Proceeds from sale / maturity of investments Capital expenditures Contributions to equity method investments - net Proceeds from sale of property & other long-term assets Acquisitions of business - net Other - net (820) 805 (880) (241) 52 0 (4) (759) 709 (940) (173) 75 (203) 5 (1,444) 1,837 (1,211) (219) 130 0 4 (1,433) 2,120 (1,829) (232) 52 0 (115) Net cash used in investing activities (1,088) (1,286) (903) (1,437) Cash flows from financing activities: Net change in short-term borrowings Net proceeds from issuance of long-term debt Repayment of long-term debt Proceeds from issuance of common stock under share-based payment plans Cash dividends paid Repurchase of Company stock Other - net (386) 1,239 (48) 137 (822) (3,905) 24 386 985 (47) 165 (733) (3,710) (15) 0 1,984 (591) 349 (704) (4,393) 22 0 993 (37) 100 (647) (2,937) (21) Net cash used in financing activities (3,761) (2,969) (3,333) (2,549) (5) (6) 1 (1) Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at beginning of year 75 391 (150) 541 (473) 1,014 362 652 Cash and cash equivalents at end of year $466 $391 $541 $1,014 Adjustments to reconcile net earnings to net cash provided by operating activities Depreciation and amortization Deferred income taxes Loss on property & other assets - net Loss on equity method investments Share-based payment expense Effect of exchange rates on cash