Required information The following are the balance sheet and consolidated statement of earnings of The Home Depot, Inc. THE HOME DEPOT, INC. CONSOLIDATED BALANCE SHEETS February January 28, 2018 January 29, 2017 3, 2019 $ $ 1,268 984 10,753 1,193 14, 198 26,329 1,149 412 $ 42,088 1,328 972 10, 223 1,340 13,863 25,669 1,177 240 $ 40,949 1,485 2,140 12,609 616 16,850 21,857 2,082 1,236 42,025 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 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 $ $ 580 4,807 1,116 319 1,162 284 1,759 1,631 11,658 9,662 356 2,192 24,674 $ 390 5,433 1,247 342 1,142 98 1,014 1,583 11,249 8,657 317 2,125 23,173 810 6,900 1,384 508 1,769 26 342 2,180 13,919 8,982 276 1,755 26,425 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: 1,307 shares at February 3, 2019 , 1,073 shares at January 28, 2018 and 1,182 shares at January 29, 2017 Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury stock, at cost, 373 shares at February 3, 2019 ,587 shares at January 28, 2018 and 538 shares at January 29, 2017 Total stockholders' (deficit) equity 83 6,037 43,083 (84) 84 6,298 57,408 (359) 86 5,903 24,141 (660) (31,705) 17,414 (46,373) 17,058 (37,660) 68, 450 Total Liabilities and Stockholders' Equity $ 42,088 $ 40,949 42,025 Fiscal 2017 $ 71,288 47,298 23,990 Fiscal 2016 $ 77, 353 51,332 26,021 17,832 1,778 17,039 1,689 THE HOME DEPOT, INC. CONSOLIDATED STATEMENTS OF EARNINGS Fiscal in millions, except per share data 2018 Net sales $ 66,191 Cost of Sales 43,760 Gross profit 22,431 Operating Expenses: Selling, General and Administrative 15,897 Depreciation and Amortization 1,703 Impairment loss 247 Total Operating Expenses 17,847 Operating income 4,584 Interest and Other (Income) Expense: Interest and Investment Income (20) Interest Expense 658 Other 152 Interest and Other, net 790 Earnings before provision for income taxes 3,794 Provision for Income Taxes 1,354 Net earnings $ 2,440 Basic weighted average common shares 1,519 Basic earnings per share $ 1.61 Diluted weighted average common shares 1,531 Diluted earnings per share $ 1.59 19,610 4,380 18,728 7,293 (20) 611 (89) 685 591 3,789 1,278 2,511 1,582 1.59 1,590 1.58 596 6,697 2,407 4,290 1,668 2.57 1,529 2.81 $ $ $ $ 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. Req A1 Req A2 Req A3 Req A4 Compute the current ratio for the fiscal years ending February 3, 2019, and January 28, 2018. (Round your answers to 2 decimal places.) Current Ratio to 1 February 3, 2019 January 28, 2018 to 1 Req A1 Req A2 Req A3 Req A4 Compute the quick ratio for the fiscal years ending February 3, 2019, and January 28, 2018. (Round your answers to 2 decimal places.) Quick Ratio to 1 February 3, 2019 January 28, 2018 to 1 Compute the amount of working capital for the fiscal years ending February 3, 2019, and January 28, 2018. (Enter your answers in thousands.) Working Capital February 3, 2019 January 28, 2018 Compute the change in working capital from the prior year for the fiscal years ending February 3, 2019, and January 28, 2018. (Enter your answers in thousands.) Change in Working Capital February 3, 2019 January 28, 2018