Refer to the financial statements of The Home Depot in Appendix A 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 Equivalents, and Restricted Cash (in millions) at January 29, 2017? O $2,538 and $2,216 O $2,538 and $2,029 $17,724 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. O Management concluded: yes; independent registered public accounting firm concluded: no. Management concluded: no; independent registered public accounting firm concluded: yes. O Management concluded: no; independent registered public accounting firm concluded: no. AS APPENDIX A Excerpts from the Fiscal 2016 Annual Report of The Home Depot, Inc. THE HOME DEPOT, INC. AND SUBSIDIARIES Consolidated Balance Sheets 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 16.454 39.266 17.075 22.191 2.102 1.196 $41.973 $ 350 $710 7,000 1,484 sos 1.669 1.315 476 1.566 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 Deferred Income Taxes Total Liabilities STOCKHOLDERS' EQUITY Common Stock, par value 50.05, 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 Less Treasury Stock, at cost, 573 million shures at January 29, 2017 and 520 million shares at January 31, 2016 Total Stockholders' Equity Total Liabilities and Stockholders' Equity See accompanying Notes to Consolidated Financial Statements, 542 2.195 77 1.941 12.524 20.789 1965 22,349 1855 38.633 35.657 88 9,787 35,319 30,973 (40,194) (33.196 6.316 $41.973 $42,966 A7 APPENDIX A Excerpts free Fiscal 2016 Annual Report of The Home Depot, line THE HOME DEPOT, INC. AND SUBSIDIARIES Consolidated States of Stockholders' Equity Stockholders Equity $12.522 122 136 (510) 225 1 -- (7.000 (2.530) 1 73 7.000 73 145 145 Accumulated Other Common Stock Paid-In Retained Comprehensive Treasury Stock amounts in millions, except per share data Shares Amount Capital Earnings Income (Low) Shares Amount Balance, February 2, 2014 1,761 $8.002 $23,180 (381) S(19,194) Net Earnings Shares Issued Under Employee Stock Plans Tax Effect of Stock-Based Compensation 136 Foreign Currency Translation Adjustments 510 Cash Flow Hedges, net of tax 11 Stock Options, Awards and Amortization of Restricted Stock Repurchases of Commen Stock (80) Cash Dividends ($1.88 per share (2.530) Other Balance, February 1, 2015 1.76 SUS $26.95 $14523 (461) $26.1944) Net Earnings 7.000 Shares Issued Under Employee Stock Plans Tux Effect of Stock-Based Compensation Foreign Currency Translation Adjustments (412) Cash Flow Hedges, net of tox Stock Options, Awards and Amortization of Restricted Stock Repurchases of Common Stock Cash Dividends ($2.36 per share 3,031) Balance, January 31, 2016 1.772 $9.47 1,973 S9 (520) $633,194) Net Earnings 7.957 Shares sued Under Employee Stock Plans Tux Effect of Stock-Based Compensation Foreign Currency Translation Adjustments Cash Flow Hodges, net of tux Stack Options, Awards and Amortization of Restricted Stack Repurchases of Common Stock (7.000) Cash Dividends (52.76 per share) 3.000 Other Balance, January 29, 2017 1.776 9,787 $35.519 S1867) (573) $40,1 See accompanie termined women (34) 244 - 1 3,031) $6316 7.957 76 3) 1 267 II (7.000 0.404) $4333 A8 APPENDIX A Excerpts from the Fiscal 2016 Annual Report of the Home Depot, Inc. THE HOME DEPOT, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows Fiscal Year Ended Jan. 31, 2016 "Fiscal 2015 Feb. 1. 2015 "Facal 2017 57.009 56.345 1.863 244 1.786 225 (181) (124) 244 146 109 (5) 888 109 154 15 (33) 9.373 168 159 (104) 8.242 (1.503) (1.442) Jan. 29, 2017 amounts in millions "Fhcal 2016" CASH FLOWS FROM OPERATING ACTIVITIES: Net Earnings $7.957 Reconciliation of Nat Earnings to Net Cash Provided by Operating Activities: Depreciation and Amortization 1.973 Stock-Based Compensation Expensie Gain on Sales of Investments Changes in Assets and Liabilities, net of the effects of acquisitions Receivables, et (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, 5165 and $217 of non-cash capital (1,621) 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 Proceeds from Long-Term Borrowings, net of discounts Repayments of Long-Term Debt (3,045) Repurchases of Common Stock (680) Proceeds from Sales of Common Stock 218 Cash Dividends Paid to Stockholders Other Financing Activities (78) Net Cash Used in Financing Activities 7.870) Change in Cash and Cash Equivalents Effect of Exchange Rate Changes on Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year 2.216 Cash and Cush Equivalents at End of Year $2,538 SUPPLEMENTAL DISCLOSURE OF CASH PAYMENTS MADE FOR: Interest, net of interest capitalized Income Taxes 1) Fiscal years ended Summary 29, 2017 January 31, 2016, and February 1, 2015 include 52 weeks Sering Cond Slam 11 (1.666) 43 2.982) 323 (200) 48 (1.271) 60 3.991 (7.000) 228 (3,031) 290 1.981 (39) (7.000) 252 (2.530) (25) 27.071) (100) (106) 604 (111) 1.723 $2.216 1.999 $1,723 S 874 53.853 S 782 $3,435