Required Information The following are the balance sheet and consolidated statement of earnings of The Home Depot, Inc. 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 Goodwill Other Assets Total Assets THE HOME DEPOT, INC. CONSOLIDATED BALANCE SHEETS February 3, 2019 January 28, 2018 January 29, 2017 $ 1,261 989 10,703 $ 1,328 969 10,223 $ 1,485 2,137 12,609 1,198 1,339 615 14,151 13,859 16,846 26,327 25,707 21,895 1,137 1,173 2,878 405 228 1,224 $ 42,020 $ 40,967 42,043 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 Deferred Income Taxes Other Long-Term Liabilities Total Liabilities Common stock, par value $0.05; authorized: 10,000 shares; issued: 1,660 at February 3, 2019, 1,680 shares at January 28, 2018 and 1,720 shares at January 29, 2017; outstanding: 1,300 shares at February 3, 2019, 1,866 shares at January 28, 2018 and 1,175 shares at January 29, 2017 $ 599 $ 4,813 360 5,423 $ 510 6,700 1,117 1,261 320 1,153 358 1,139 1,484 508 1,669 282 105 29 1,756 1,011 392 1,636 1,579 2,185 11,667 11,236 13,477 9,658 8,658 8,983 357 2,189 317 2,135 346 1,855 24,667 23,168 25,984 Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury stock, at cost, 380 shares at February 3, 2019, 594 shares at January 28, 2018 and 545 shares at January 29, 2017 Total stockholders' (deficit) equity Total Liabilities and Stockholders' Equity 83 6,029 42,861 (80) 84 6,286 57,406 (355) 86 5,891 24,879 (656) (31,540) 17,353 (46,332) 17,089 (36,515) 68,027 $ 42,020 $ 48,967 42,043 in millions, except per share data Net sales Cost of Sales Gross profit Operating Expenses: THE HOME DEPOT, INC. CONSOLIDATED STATEMENTS OF EARNINGS Selling, General and Administrative Depreciation and Amortization Impairment loss Total Operating Expenses Operating income Interest and Other (Income) Expense: Interest and Investment Income Interest Expense Other Interest and Other, net Earnings before provision for income taxes Provision for Income Taxes Fiscal 2017 Fiscal 2016 $ 71,291 47,293 23,998 19,600 Fiscal 2018 $ 66,189 43,751 $ 77,350 51,347 22,438 26,003 15,886 17,833 17,951 1,701 227 17,814 1,767 1,700 18,751 4,624 4,398 7,252 (24) (24) (74) 662 614 688 145 783 598 614 3,841 3,808 6,638 1,360 1,269 2,392 $ 2,481 1,589 $ 1.56 1,601 $ 2,539 1,652 $ 1.54 1,668 Net earnings Basic weighted average common shares Basic earnings per share Diluted weighted average common shares Diluted earnings per share $ 1.55 $ 1.53 Fiscal 2018 Includes 53 weeks. Fiscal 2017 and fiscal 2016 Include 52 weeks. $ 4,246 1,738 $ 2.44 1,599 $ 2.66 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