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kindly answer all parts of the question as soon as possible. Will upvote Question 11 Answer the following questions using the excerpt of 10-K filings
kindly answer all parts of the question as soon as possible. Will upvote
Question 11 Answer the following questions using the excerpt of 10-K filings of Home Depot: a. What is the fiscal year end date of Home Depot's 2022 Fiscal Year? b. Write the accounting equation for Home Depot for 2022 and 2021. (Total assets = Total liabilities + Total shareholders' equity) 2022: 2021: c. What is the gross profit margin for Home Depot for Fiscal 2022, 2021, and 2020. Analyze the trend. Gross Profit Margin [1 - (total Op Exp/total Revenue)] 2022: 2021: 2020 d. What inventory flow assumption does HomeDepot use to measure their inventories? Describe the benefits of using this assumption. e. Home Depot records the inventories at the lower of cost or net realizable value. What is the accounting feature does the lower of cost or net realizable value method manifest? f. If Home Depot discovers that the net realizable value of their inventories is lower than the total cost at the end of the year, how does the follow-up adjustment affect Home Depot's asset, liabilities, and shareholder's equity? g. What is the gross balance of depreciable property and equipment (PP\&E) at the end of 2022 (land and construction in progress are not considered depreciable)? In Note 1, you have the Accumulated Amortization for intangible assets. Assume the change in Accumulated Amortization amount is only due to the 2022 Amortization expense. [Formula: Gross Dep. PP\&E = PP\&E Gross Land - Work in Progress] h. Determine the depreciation expense for the PP\&E for 2022? i. Estimate the average age of all depreciable PP\&E (only in aggregate across all asset types, not asset-by-asset). Assume straight-line depreciation and zero salvage values. [Formula: Ending Acc. Depreciation = 0+ DepExp.Yr1 + DepExp.Yr2 +... DepExp.Yrn] AvgaAge PP\&E = Accumulated Depreciation Ending / (total DepExp) j. For the past three years, the Net cash used in financing activities for Home Depot are all negative. Analyze what the main financing activities that contribute to the negative outflow. If you are a shareholder of Home Depot, will you be concerned? State your reasons (Hint: relate to the net cash in operating activities). In Note 4, DEBT AND DERIVATIVE INSTRUMENTS, Home Depot states that they have issued three tranches of senior notes in September 2022 (Page 21). k. Calculate the cash proceeds regarding to the September issuance (Assume all fees related to the issuances are included in the discount amount).; I. What is the total cash interest Home Depot needs to pay on March 15, 2023 regarding to this issuance? September 2022 Issuance. In September 2022, we issued three tranches of senior notes. - The first tranche consisted of $750 million of 4.00% senior notes due September 15,2025 at a discount of $0.3 million. Interest on these notes is due semi-annually on March 15 and September 15 of each year, beginning March 15, 2023. - The second tranche consisted of $1.25 billion of 4.50% senior notes due September 15,2032 at a discount of $1 million. Interest on these notes is due semi-annually on March 15 and September 15 of each year, beginning March 15, 2023. - The third tranche consisted of $1.0 billion of 4.95% senior notes due September 15,2052 at a discount of $14 million. Interest on these notes is due semi-annually on March 15 and September 15 of each year, beginning March 15, 2023. - Issuance costs totaled $15 million. March 2022 Issuance. In March 2022, we issued four tranches of senior notes. - The first tranche consisted of $500 million of 2.70% senior notes due April 15,2025 at a discount of $1 million. Interest on these notes is due semi-annually on April 15 and October 15 of each year, beginning October 15, 2022. - The second tranche consisted of $750 million of 2.875% senior notes due April 15,2027 at a discount of $4 million. Interest on these notes is due semi-annually on April 15 and October 15 of each year, beginning October 15,2022. - The third tranche consisted of $1.25 billion of 3.25% senior notes due April 15,2032 at a discount of $6 million. Interest on these notes is due semi-annually on April 15 and October 15 of each year, beginning October 15, 2022. - The fourth tranche consisted of $1.5 billion of 3.625% senior notes due April 15,2052 at a discount of $32 million. Interest on these notes is due semi-annually on April 15 and October 15 of each year, beginning October 15, 2022. - Issuance costs totaled $22 million. THE HOME DEPOT, INC. CONSOLIDATED BALANCE SHEETS Liabilities and Stockholders' Equity Current liabilities: Short-term debt Accounts payable Accrued salaries and related expenses Sales taxes payable Deferred revenue Income taxes payable Current installments of long-term debt Current operating lease liabilities Other accrued expenses Total current liabilities Long-term debt, excluding current installments Long-term operating lease liabilities Deferred income taxes Other long-term liabilities Total liabilities Commitments and contingencies (Note 11) Common stock, par value $0.05; authorized: 10,000 shares; issued: 1,794 shares at January 29,2023 and 1,792 shares at January 30, 2022; outstanding: 1,016 shares at January 29, 2023 and 1,035 January 30,2022 Paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock, at cost, 778 shares at January 29, 2023 and 757 shares at January 30,2022 Total stockholders' equity (deficit) Total liabilities and stockholders' equity Fiseal 2022 Form 10-K 36 Table of Contents THE HOME DEPOT, INC. CONSOLIDATED STATEMENTS OF EARNINGS 39Step by Step Solution
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