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The following are the balance sheet and consolidated statement of earnings of The Home Depot, Incorporated:

THE HOME DEPOT, INCORPORATED

CONSOLIDATED BALANCE SHEETS

February $3,2019$ January $28,2018$ January $29,2017$

millions, except per share data

Assets

Current Assets:

Cash and Cash Equivalents $ $1,244$ $ $1,321$ $ $1,478$

Receivables, net $9809782,146$

Merchandise Inventories $10,70310,26312,649$

Other Current Assets $1,2041,325601$

Total Current Assets $14,13113,88716,874$

Net Property and Equipment $26,46425,72621,914$

Goodwill $1,1391,1732,078$

Other Assets $4052301,226$

Total Assets $ $42,139$ $ $41,01642,092$

Liabilities and stockholders$$ equity

Current Liabilities:

Short$-$Term Debt $ $560$ $ $360$ $ $710$

Accounts Payable $4,8195,4036,500$

Accrued Salaries and Related Expenses $1,1151,2441,384$

Sales Taxes Payable $317358408$

Deferred Revenue $1,1511,1541,769$

Income Taxes Payable $2859922$

Current Installments of Long$-$Term Debt $1,7551,011442$

Other Accrued Expenses $1,6361,5742,225$

Total Current Liabilities $11,63811,20313,460$

Long$-$Term Debt, excluding current installments $9,6618,6478,972$

Deferred Income Taxes $352313326$

Other Long$-$Term Liabilities $2,1952,1291,755$

Total Liabilities $24,64523,13325,956$

Common stock, par value $$0\mathrm{.}05$; authorized: $10,000$ shares; issued: $1,560$ at February $3,2019,1,580$ shares at January $28,2018$ and $1,620$ shares at January $29,2017$; outstanding: $1,188$ shares at February $3,2019,968$ shares at January $28,2018$ and $1,077$ shares at January $29,2017787981$

Paid$-$In Capital $6,0376,2985,903$

Retained Earnings $45,17557,32423,395$

Accumulated Other Comprehensive Loss $(84)(358)(659)$

Treasury stock, at cost$,392$ shares at February $3,2019,592$ shares at January $28,2018$ and $543$ shares at January $29,2017(33,712)(46,176)(38,010)$

Total stockholders$($deficit$)$ equity $17,49417,16768,048$

Total Liabilities and Stockholders$$ Equity $ $42,139$ $ $41,016$ $ $42,092$

THE HOME DEPOT, INCORPORATED

CONSOLIDATED STATEMENTS OF EARNINGS

Fiscal $2018$ Fiscal $2017$ Fiscal $2016$

in millions, except per share data

Net sales $ $66,177$ $ $71,307$ $ $77,367$

Cost of Sales $43,76247,28451,345$

Gross profit $22,41524,02326,022$

Operating Expenses:

Selling, General and Administrative $15,89417,83317,037$

Depreciation and Amortization $1,6921,7711,691$

Impairment loss $247$

Total Operating Expenses $17,83319,60418,728$

Operating income $4,5824,4197,294$

Interest and other $($income$)$ expense:

Interest and investment income $(22)(22)(94)$

Interest expense $664609696$

Other $149$

Interest and other, net $791587602$

Earnings before provision for income taxes $3,7913,8326,692$

Provision for Income Taxes $1,3451,2642,397$

Net earnings $ $2,446$ $ $2,568$ $ $4,295$

Basic weighted average common shares $1,5691,6321,718$

Basic earnings per share $ $1\mathrm{.}56$ $ $1\mathrm{.}57$ $ $2\mathrm{.}50$

Diluted weighted average common shares $1,5811,6401,579$

Diluted earnings per share $ $1\mathrm{.}55$ $ $1\mathrm{.}57$ $ $2\mathrm{.}72$

Fiscal $2018$ includes $53$ weeks. Fiscal $2017$ and fiscal $2016$ include $52$ weeks.

Assume that you are the credit manager of a medium$-$size supplier of building materials and related products. Home Depot wants to make credit purchases from your company, with payment due in $60$ days.

Instructions:

a$-1.$ Compute the current ratio for the fiscal years ending February $3,2019,$ and January $28,2018.$

a$-2.$ Compute the quick ratio for the fiscal years ending February $3,2019,$ and January $28,2018.$

a$-3.$ Compute the amount of working capital for the fiscal years ending February $3,2019,$ and January $28,2018.$

a$-4.$ Compute the change in working capital from the prior year for the fiscal years ending February $3,2019,$ and January $28,2018.$