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. As of January 29, 2017, how many shares of common stock were authorized? How many shares were issued? How many shares were held in treasury? 10 billion; 1.772 billion; 1.252 billion 10 billion; 1.203 billion; 573 million 10 billion; 1.776 billion; 1.203 billion 10 billion; 1.776 billion; 573 million 2. According to the Retained Earnings column in the Statement of Stockholders' Equity, what was the total dollar amount of cash dividends declared during the year ended January 29, 2017? $7,957 million $35,519 million $3,404 million $2.76 million (1,621) (1,503) 144 (1,442) 323 (200) (1,666) 43 48 (1,583) (2,982) (1,271) 60 360 4,959 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 CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from Short-Term Borrowings, net Proceeds from Long-Term Borrowings, net of discounts Repayments of Long-Term Debt Repurchases of Common Stock Proceeds from Sales of Common Stock Cash Dividends Paid to Stockholders Other Financing Activities Net Cash Used in Financing Activities Change in Cash and Cash Equivalents Effect of Exchange Rate Changes on Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year SUPPLEMENTAL DISCLOSURE OF CASH PAYMENTS MADE FOR: Interest, net of interest capitalized (3,045) (6,880) 218 (3,404) (78) (7,870) 330 3,991 (39) (7,000) 228 (3,031) 290 1,981 (39) (7,000) 252 (2,530 (25) (5,787) 604 (7,071) (100) Read this section if you do not understand the highlighted topic. (106) 1,929 $1,723 (8) 2,216 $2,538 (111) 1,723 $ 2,216 $ 924 $ 874 $ 782 $ $ 710 7,000 1,484 508 1,669 25 542 2,195 14,133 350 6,565 1,515 476 1,566 34 22,349 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 77 1,941 12,524 20,789 1,965 379 35,657 1,855 296 38,633 88 88 9,787 35,519 (867) (40,194) 9,347 30,973 (898) (33,194) 38,633 35,657 88 X2 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) 9,347 30,973 (898) (33,194) 4,333 $42,966 6,316 $41,973 See accompanying Notes to Consolidated Financial Statements. Page 58,254 THE HOME DEPOT, INC. AND SUBSIDIARIES Consolidated Statements of Earnings Fiscal Year Ended (1) Jan. 29, 2017 Jan. 31, 2016 Feb. 1, amounts in millions, except per share data "Fiscal 2016" "Fiscal 2015" "Fiscal 2 NET SALES $94,595 $88,519 $83,176 Cost of Sales 62,282 54,787 GROSS PROFIT 32,313 30,265 28,389 Operating Expenses: Selling, General and Administrative 17,132 16,801 16,280 Depreciation and Amortization 1,754 1,690 1,640 Total Operating Expenses 18,886 18,491 17,920 OPERATING INCOME 13,427 11,774 10,469 Interest and Other (Income) Expense: Interest and Investment Income (36) (166) (337) Interest Expense 972 919 Interest and Other, net X Read this section if you do not understand the highlighted EARNINGS BEFORE PROVISION FOR INCOME TA topic. Provision for Income Taxes 4,534 4,012 3,631 NET EARNINGS $ 7,957 $ 7,009 $ 6,345 Weighted Average Common Shares 1,229 1,277 1,338 BASIC EARNINGS PER SHARE $ 6.47 $ 5.49 $4.74 Diluted Weighted Average Common Shares 1,234 1,283 1,346 DILUTED EARNINGS PER SHARE $ 6.45 $ 5.46 $ 4.71 830 THE HOME DEPOT, INC. AND SUBSIDIARIES Consolidated Statements of Comprehensive Income Fiscal Year Ended(1) Jan. 29, 2017 Jan. 31, 2016 Feb. 1, 2015 Fiscal 201 amounts in millions Fiscal 2016 Fiscal 2015 Net Earnings $7,957 $7,009 $6,345 Other Comprehensive Income (Loss): Foreign Currency Translation Adjustments (412) (510 Cash Flow Hedges, net of tax (34) Other Total Other Comprehensive Income (Loss) (446) COMPREHENSIVE INCOME $7,988 $6,563 $5,847 11 498 (1) Fiscal years ended January 29, 2017, January 31, 2016, and February 1, 2015 include 52 weeks. Sagamnang Matag to Congolidatad Financial Statamante Page 652 THE HOME DEPOT, INC. AND SUBSIDIARIES Consolidated Statements of Stockholders' Equity Common Stock Amount amounts in millions, except per share data Balance, February 2, 2014 Net Earnings Shares 1,761 Paid-In Capital $8,402 Retained Earnings $23,180 0511 $88 6,345 Shares Issued Under Employee Stock Plans 122 ||||| ||| Read this section if you do not understand the highlighted topic. 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 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 $8,885 $88 1,768 $6985 $26,995 7,009 ||||| tapos 1,768 $88 $8,885 $26,995 7,009 sayong = 73 145 | LL LL 244 | + | UL LIST + | L $88 Balance, February 1, 2015 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 ($2.36 per share) Balance, January 31, 2016 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 ($2.76 per share) Other Balance, January 29, 2017 $9,347 (3,031) $30,973 7,957 267 (3,404) (7) $35,519 1,776 ,776 $9,787 THE HOME DEPOT, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows Fiscal Year Ended!) Jan. 29, 2017 Jan. 31, 2016 Feb. 1, 20 amounts in millions Fiscal 2016 Fiscal 2015 Fiscal 20 CASH FLOWS FROM OPERATING ACTIVITIES: Net Earnings $7,957 $7,009 $6,345 Reconciliation of Net Earnings to Net Cash Provided by Operating Activities: Depreciation and Amortization 1,973 1,863 1,786 Stock-Based Compensation Expense 267 244 225 Gain on Sales of Investments (144) Changes in Assets and Liabilities, net of the effects of acquisitions: Receivables, net (138) (181) (81) Merchandise Inventories (769) (546) (124) Other Current Assets (48) (5) (199) Accounts Payable and Accrued Expenses 446 888 244 Deferred Revenue 99 Read this section if you do not understand the highlighted Income Taxes Payable 109 topic. Deferred Income Taxes (117) 159 Other (33) (104) Net Cash Provided by Operating Activities 9,373 8,242 CASH FLOWS FROM INVESTING ACTIVITIES (323) 15 9,783 (1,621) (1,503) 144 (1,442) 323 (200) (1,666) 43 48 (1,583) (2,982) (1,271) 60 360 4,959 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 CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from Short-Term Borrowings, net Proceeds from Long-Term Borrowings, net of discounts Repayments of Long-Term Debt Repurchases of Common Stock Proceeds from Sales of Common Stock Cash Dividends Paid to Stockholders Other Financing Activities Net Cash Used in Financing Activities Change in Cash and Cash Equivalents Effect of Exchange Rate Changes on Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year SUPPLEMENTAL DISCLOSURE OF CASH PAYMENTS MADE FOR: Interest, net of interest capitalized (3,045) (6,880) 218 (3,404) (78) (7,870) 330 3,991 (39) (7,000) 228 (3,031) 290 1,981 (39) (7,000) 252 (2,530 (25) (5,787) 604 (7,071) (100) Read this section if you do not understand the highlighted topic. (106) 1,929 $1,723 (8) 2,216 $2,538 (111) 1,723 $ 2,216 $ 924 $ 874 $ 782 3. According to the income statement, how has The Home Depots net earnings and basic earnings per share changed over the past three years? Both net earnings and EPS increased. Net earnings increased and EPS decreased. Net earnings decreased and EPS increased. O Both net earnings and EPS decreased