Par sources of information, such as: Annual reports include not only comparative financial statements but also other A multiyear summary of financial highlights, a summary of key statistics for the past 5 or 10 years. Several pages of Notes that accompany the financial statements. Reports by management and by the independent auditors in which they express their respective responsibilities for the financial statements. Instructions Answer each of the following questions and explain where in the statements, notes, or other sections of the annual report you located the information used in your answer. How many years are covered in each of the primary comparative financial statements? Were all of these statements audited? Name the auditors. What were the auditors' conclusions con- a. b. Home Depot, Inc, combines its statement of retained earnings with another financial state- c. Over the three years presented, have the company's annual net cash flows been positive or Has the company's cash balance increased or decreased during each of these three years? Part Assume that you are the credit manager of a medium-size supplier of building mate- cerning these statements? ment. Where are details about changes in the amount of retained earnings found? negative from (1) operating activities, (2) investing activities, and (3) financing activities? rials and related products. Home Depot wants to make credit purchases from your company with payment due in 60 days. Instructions a. As general background, read the first note to the financial statements, "Summary of Significant Accounting Policies." Next, compute the following for the fiscal years ending January 31, 2016, and February 1, 2015 (round percentages to the nearest tenth of 1 percent, and other computations to one decimal place). 1. Current ratio 2. Quick ratio. 3. Amount of working capital