Refer to the financial statements of The Home Depot in Appendix A. (Note: Fiscal 2019 for The Home Depot runs from February 4, 2019, to February 2, 2020.) Required: 1. What amount of Net Sales (in millions) does the company report during the year ended February 2, 2020? $110,225 $72,653 $37.572 $11.242 2. Assuming that Cost of Sales is the company's term for Cost of Goods Sold, compute the company's gross profit percentage for fiscal 2019 and the year immediately prior to that. 65.9% and 65.7% 34.1% and 34,3% 671% and 70.4% 32.9% and 29,6% 3. Assume that The Home Depot experienced no shrinkage in the most current year. Using the balance sheet and income statement, estimate the amount of purchases (in millions) in the year ended February 2, 2020 $73,259 $72,047 $110,831 $72,653 Fiscal 2018 S108,203 71,043 37.160 Fiscal 2017 $100,904 66,548 34,356 17.864 1.811 THE HOME DEPOT, INC. Consolidated Statements Of Earnings in millions, except per share data Fiscal 2019 NET SALES $110,225 Cost of sales 72,653 GROSS PROFIT 37,572 Operating expenses: Selling, general and administrative 19,740 Depreciation and amortization 1,989 Impairment loss Total operating expenses 21,729 OPERATING INCOME 15,843 Interest and other income) expense: Interest and investment income (73) Interest expense 1,201 Other Interest and other, net 1.128 EARNINGS BEFORE PROVISION FOR INCOME TAXES 14,715 Provision for income taxes 3,473 NET EARNINGS $ 11.242 Basic weighted average common shares 1,093 BASIC EARNINGS PER SHARE $ 10.29 Diluted weighted average common shares 1,097 DILUTED EARNINGS PER SHARE $ 10.25 19,513 1,870 247 21.630 15,530 19,675 14,681 (74) 1,057 (93) 1,051 16 974 14,556 3,435 $ 11,121 1.137 S 9.78 1.143 S 9.73 983 13,698 5.068 S 8,630 1.178 S 7.33 1.184 $ 7.29 February 2, 2020 "Fiscal 2019" February 3, 2019 "Fiscal 2018" in millions, except per share data ASSETS Current assets: Cash and cash equivalents Receivables, net Merchandise inventories Other current assets Total current assets Net property and equipment Operating lease right-of-use assets 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 Current operating lease liabilities Other accrued expenses Total current liabilities $ 2,133 2,106 14,531 1,040 19,810 22,770 5,595 2,254 807 51,236 $ 1.778 1.936 13.925 890 18,529 22,375 2.252 847 $ 44,003 $ 974 7,787 1,494 605 2,116 55 1.839 828 2,677 1,339 7,755 1,506 656 1.782 11 1,056 2611 TO 656 1.782 11 1,056 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 Common stock, par value $0.05; authorized: 10,000 shares; issued: 1,786 shares at February 2, 2020 and 1,782 shares at February 3, 2019; outstanding: 1,077 shares at February 2, 2020 and 1,105 shares at February 3, 2019 Paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock, at cost, 709 shares at February 2, 2020 and 677 shares at February 3, 2019 Total stockholders' (deficit) equity Total liabilities and stockholders' equity 605 2,116 55 1,839 828 2.677 18,375 28,670 5,066 706 1,535 54,352 2,611 16,716 26,807 491 1,867 45,881 89 11,001 51,729 (739) 89 10,578 46,423 (772) (65,196) (3.116 $ 51,236 (58,196) (1.878 $ 44.003