Refer to the financial statements of The Home Depot in Appendix Al at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016 to January 29, 2017. 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. How much does The Home Depot report for Cash and Cash Equivalentsand Restricted Cash (in millions) at January 29, 2017 O $2,538 and $2,216 $2,538 and $2,029 $17724 and $1.235 $2,538 and 50 2. Accompanying the financial statements are reports issued by management and an independent registered public accounting firm regarding the company's internal control. According to these reports, did the company maintain effective internal control over financial reporting 52,538 and $2.216 $2,538 and $2,029 $17724 and $1,235 $2,538 and $0 2. Accompanying the financial statements are reports issued by management and an independent registered public accounting firm regarding the company's internal control. According to these reports, did the company maintain effective Internal control over financial reporting? Management concluded: yes, Independent registered public accounting firm concluded: yes. Management concluded yes, independent registered public accounting firm concluded: no Management concluded: no, Independent registered public accounting firm concluded: yes. Management concluded: no, independent registered public accounting firm concluded no APPENDIX A Excerpts from the Fiscal 2016 Annual Report of The Home Depot, Inc A5 THE HOME DEPOT, INC. AND SUBSIDIARIES Consolidated Balance Sheets January 29, 2017 "Fiscal 2016 January 31, 2016 "Fiscal 2015" amounts in millions, except share and per share data ASSETS Current Assets: Cash and Cash Equivalents Receivables, net Merchandise Inventories Other Current Assets Total Current Assets Property and Equipment, at cost Less Accumulated Depreciation and Amortization Net Property and Equipment Goodwill Other Assets Total Assets 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 Other Accrued Expenses Total Current Liabilities Long-Term Debt, excluding current installments Other Long-Term Liabilities $ 2,538 2,029 12,549 608 17,724 40,426 18,512 21,914 2,093 1,235 $42,966 $ 2,216 1.890 11.809 569 16,484 39,266 17,075 22.191 2,102 1.196 $41.973 $ 710 7,000 1,484 508 1,669 25 542 2,195 14,133 22.349 1,855 $ 350 6,565 1,515 476 1.566 34 1.9.11 12.524 20.789 1.965 542 2,195 14,133 22,349 1,855 296 38,633 77 1,941 12.524 20,789 1.9965 379 35.657 88 88 Current Installments of Long-Term Debt Other Accrued Expenses Total Current Liabilities Long-Term Debt, excluding current installments Other Long-Term Liabilities Deferred Income Taxes Total Liabilities STOCKHOLDERS' EQUITY Common Stock, par value $0.05; authorized: 10 billion shares; issued: 1.776 billion shares at January 29, 2017 and 1.772 billion shares at January 31, 2016; outstanding: 1.203 billion shares at January 29, 2017 and 1.252 billion shares at January 31, 2016 Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock, at cost, 573 million shares at January 29, 2017 and 520 million shares at January 31, 2016 Total Stockholders' Equity Total Liabilities and Stockholders' Equity 9,787 35,519 (867) (40,194) 30.973 (898) (33,194) 4,333 $42,966 6,316 541973 See accompanying Notes to Consolidated Financial Statements A6 APPENDIX A Excerpts from the Fiscal 2016 Annual Report of The Home Depot, Inc. THE HOME DEPOT, INC, AND SUBSIDIARIES Consolidated Statements of Earnings Fiscal Year Ended) Jan. 31, 2016 "Fiscal 2015 Feb. 1. 2015 "Fiscal 2014 $88,519 58 254 $83,176 54,787 30,265 28,389 16,801 1,690 18.491 16,280 1,640 17,920 10,469 11.774 Jan. 29, 2017 amounts in millions, except per share data "Fiscal 2016 NET SALES $94,595 Cost of Sales 62,282 GROSS PROFIT 32,313 Operating Expenses: Selling. General and Administrative 17,132 Depreciation and Amortization 1,754 Total Operating Expenses 18,886 OPERATING INCOME 13,427 Interest and Other (Income) Expense: Interest and Investment Income (36) Interest Expense 972 Interest and Other, net 936 EARNINGS BEFORE PROVISION FOR INCOME TAXES 12,491 Provision for Income Taxes 4,534 NET EARNINGS $ 7,957 Weighted Average Common Shares 1,229 BASIC EARNINGS PER SHARE $ 647 Diluted Weighted Average Common Shares 1,234 DILUTED EARNINGS PER SHARE $ 6.45 ) Fiscal year ended January 29, 2017 January 31, 2016, and February 1, 2015 include 52 weeks See accompanying Notes to Consolidated Financial Statement (166) 919 753 (337) 830 493 9,976 3,631 11.021 4,012 $ 7,009 1.277 $ 6,345 1.338 $ 549 1,283 $4.74 1.346 $ 5.46 $401 6 / 12 100% + 1,234 1.346 Diluted Weighted Average Common Shares DILUTED EARNINGS PER SHARE 1.283 $ 5.46 $ 6.45 $ 4,71 (1) Fiscal years ended January 29, 2017 January 31, 2016, and February 1, 2015 include 52 weke See accompanying Notes to Consolidated Financial Statements, THE HOME DEPOT, INC. AND SUBSIDIARIES Consolidated Statements of Comprehensive Income Fiscal Year Ended Jan. 31, 2016 "Fiscal 2015" Feb. 1, 2015 "Fiscal 2014" $7,009 56,345 (412) (34) amounts in millions Jan. 29, 2017 "Fiscal 2016" Net Earnings $7,957 Other Comprehensive Income (Loss): Foreign Currency Translation Adjustments (3) Cash Flow Hedges, net of tax 34 Other Total Other Comprehensive Income (Loss) COMPREHENSIVE INCOME $7,988 (1) Fiscal years ended January 29, 2017. January 31, 2016, and February , 2015 include 52 weeks. Ser accompanying Notes to Consolidated Financial Statements (510) 11 1 (498 31 (446) $6,563 S5.847 Source: The Home Depot