Refer to the financial statements of The Home Depot in Appendix A. (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.) 1. How much inventory does the company hold on January 29, 2017? Does this represent an increase or decrease in comparison to the prior year? $12,549, which is an increase $12,549, which is a decrease $11,809, which is an increase $11,809, which is a decrease 2. What method(s) does the company use to determine the cost of its inventory? Describe where you found this information Specific Identification: Management's Discussion and Analysis Weighted average cost the Balance Sheet FIFO; Note 1 LIFO; Note 1 3. Compute to one decimal place the company's inventory turnover ratio and days to sell for the year ended January 29, 2017. (Use 365 days in a year.) 5.1 times per year and 71.6 days 7.5 times per year and 48.7 days 50 times per year and 73.0 days 78 times per year and 46.8 days January 29, 2017 "Fiscal 2016" January 31, 2016 "Fiscal 2015" $ 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 $ 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, al 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 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 350 6,565 1.515 476 1.566 34 $ 710 7,000 1,484 508 1,669 25 542 2.195 14,133 22,349 1,855 296 38,633 1.941 12.524 20,789 1.965 379 35.657 9.347 30,973 9,787 35,519 (867) (40,194) (898) (33.194) 4,333 $42.966 6.316 $41.973 See accompanying Notes to Consolidated Financial Statements Fiscal Year Ended) Jan. 31, 2016 "Fiscal 2015" Feb. 1, 2015 "Fiscal 2014" $88,519 58.254 583,176 54,787 28,389 30.265 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 Interest Expense Interest and Other, net EARNINGS BEFORE PROVISION FOR INCOM 12,491 Provision for Income Taxes 4,534 NET EARNINGS $ 7,957 Weighted Average Common Shares 1,229 BASIC EARNINGS PER SHARE 6.47 Diluted Weighted Average Common Shares 1,234 DILUTED EARNINGS PER SHARE $ 6.45 (1) Fiscal years ended January 29, 2017 January 31, 2016, and February 1, 2015 include 52 weeks. See accompanying Notes to Consolidated Financial Statements. (36) (166) 919 (337) 830 972 916 753 493 11,021 4,012 9,976 3,631 $ 7,009 1,277 S 6,345 1.338 $ 5.49 1,283 $4.74 1.346 $ 5.46 $ 4.71 THE HOME DEPOT, INC. AND SUBSIDIARIES Consolidated Statements of Comprehensive Income Fiscal Year Ended) Jan. 31, 2016 "Fiscal 2015" $7,009 Feb. 1, 2015 "Fiscal 2014" $6,345 amounts in millions Jan. 29, 2017 "Fiscal 2016" Net Earnings $7.957 Other Comprehensive Income (Loss): Foreign Currency Translation Adjustments Cash Flow Hedges, net of tax Other Total Other Comprehensive Income (Loss) COMPREHENSIVE INCOME $7,988 (1) Fiscal years ended January 29, 2017 January 31, 2016, and February 1, 2015 include 52 weeks See accompanying Notes to Consolidated Financial Statements. (412) (34) (510) (498) (446) $6,563 S5.847 Treasury Stock Accumulated Other Comprehensive Income (Loss) $ 46 Shares Amount (381) $(19,194) Stockholders' Equity $12,522 6,345 122 136 (510) 11 225 (510) (7.000) (2,530) (452) $(26,194) $ 9,322 7,009 73 145 Common Stock Paid-In Retained amounts in millions, except per share data Shares Amount Capital Earnings Balance, February 2, 2014 1,761 $88 $8,402 $23,180 Net Earnings 6,345 Shares Issued Under Employee Stock Plans Tax Effect of Stock-Based Compensation Foreign Currency Translation Adjustments Cash Flow Hedges, net of tax Stock Options, Awards and Amortization of Restricted Stock Repurchases of Common Stock Cash Dividends ($1.88 per share) Other Balance, February 1, 2015 1,768 888 88,885 $26,995 Net Earnings Shares Issued Under Employee Stock Plans 4 Tax Effect of Stock-Based Compensation - Foreign Currency Translation Adjustments - Cash Flow Hedges, net of tax- cheader Stock Options, Awards and Amortization - of Restricted Stock Repurchases of Common Stock Cash Dividends ($2.36 per share) Balance, January 31, 2016 1,772 Net Earnings Shares Issued Under Employee Stock Plans Tax Effect of Stock-Based Compensation Foreign Currency Translation Adjustments Cash Flow Hedges, net of tax Stock Options, Awards and Amortization of Restricted Stock Repurchases of Common Stock Cash Dividends (52.76 per share) Other Balance, January 29, 2017 $88 $9,787 $35,519 See accompanying Notes to Consolidated Financial Statements, (34) 244 (7.000) (7.000) (3.031) 6.316 7.957 SU973 $(33,194) 267 (53) (7.000) (3 404 (7.000) (3,404) $(867) (573) $(40,194) $ 4.333 . .CUCUCCUPUL_ JOULD JUL! Fiscal Year Ended Jan. 31, 2016 "Fiscal 2015" Feb. 1, 2015 "Fiscal 2014" $7,009 $6,345 1.863 244 (144) 1.786 225 (323) (181) (546) (81) (124) (199) 244 446 888 109 154 146 109 168 159 (33) 9.373 (104) 8,242 (1,621) (1,503) (1,442) Jan. 29, 2017 amounts in millions "Fiscal 2016" CASH FLOWS FROM OPERATING ACTIVITIES: Net Earnings $7,957 Reconciliation of Net Earnings to Net Cash Provided by Operating Activities: Depreciation and Amortization 1,973 Stock-Based Compensation Expense 267 Gain on Sales of Investments Changes in Assets and Liabilities, net of the effects of acquisitions: Receivables, net (138) Merchandise Inventories (769) Other Current Assets (48) Accounts Payable and Accrued Expenses Deferred Revenue Income Taxes Payable Deferred Income Taxes (117) Other Net Cash Provided by Operating Activities 9,783 CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures, net of $179, $165 and $217 of non-cash capital expenditures in fiscal 2016, 2015 and 2014, respectively Proceeds from Sales of Investments Payments for Businesses Acquired, net Proceeds from Sales of Property and Equipment Net Cash Used in Investing Activities (1,583) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from Short-Term Borrowings, net 360 Proceeds from Long-Term Borrowings, net of discounts 4.959 Repayments of Long-Term Debt (3.045) Repurchases of Common Stock (6,880) Proceeds from Sales of Common Stock 218 Cash Dividends Paid to Stockholders (3,404) Other Financing Activities Net Cash Used in Financing Activities (7.870) Change in Cash and Cash Equivalents 330 Effect of Exchange Rate Changes on Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year 2,216 Cash and Cash Equivalents at End of Year $2,538 SUPPLEMENTAL DISCLOSURE OF CASH PAYMENTS MADE FOR: Interest, net of interest capitalized $ 924 Income Taxes (1) Meal years ended/anwary 29, 2017. January 31, 2016, and February 1, 2015 include 52 weeks See accompanying Notes to Consolidated Financial Statements 144 323 (200) (1,666) (2,982) (1.271) 290 1.981 (39) 3,991 (39) (7.000) 228 (3,031) (7.000) 252 (2.530) (5.787) 604 (7.071) (100) (106) 1.929 (8) 1.723 $2,216 $1.723 S 874 $3,853 $ 782 $3,435