Required information

The following are the consolidated statement of earnings and the balance sheet of Home Depot, Inc and Subsidiaries.

THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS
	Fiscal Year Ended(1)
amounts in millions, except per share data	January 31,2016				February 1, 2015				February 2, 2014
NET SALES	$	66,185			$	71,291			$	77,358
Cost of Sales		43,753				47,298				51,342
GROSS PROFIT		22,432				23,993				26,016
Operating Expenses:
Selling, General and Administrative		15,890				17,843				17,050
Depreciation and Amortization		1,691				1,771				1,697
Total Operating Expenses		17,581				19,614				18,747
OPERATING INCOME		4,851				4,379				7,269
Interest and Other (Income) Expense:
Interest and Investment Income		(26	)			(26	)			(84	)
Interest Expense		665				608				687
Other		(155	)			155
Interest and Other, net		794				737				603
EARNINGS BEFORE PROVISION FOR INCOME TAXES		4,057				3,642				6,666
Provision for Income Taxes		1,348				1,276				2,403
NET EARNINGS	$	2,709			$	2,366			$	4,263
Weighted Average Common Shares		1,529				1,592				1,678
BASIC EARNINGS PER SHARE	$	1.77			$	1.70			$	2.54
Diluted Weighted Average Common Shares		1,541				1,600				1,539
DILUTED EARNINGS PER SHARE	$	1.76			$	1.48			$	2.77

⁽¹⁾ Fiscal years ended January 31, 2016, February 1, 2015 and February 2, 2014 include 52 weeks.

THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
amounts in millions, except share and per share data	January 31, 2016				February 1, 2015
ASSETS
Current Assets:
Cash and Cash Equivalents	$	1,277			$	1,222
Receivables, net		980				983
Merchandise Inventories		10,248				10,703
Other Current Assets		1,333				1,208
Total Current Assets		13,838				14,116
Property and Equipment, at cost		37,437				36,603
Less Accumulated Depreciation and Amortization		11,720				10,203
Net Property and Equipment		25,717				26,400
Goodwill		1,188				1,146
Other Assets		235				407
Total Assets	$	40,978			$	42,069
LIABILITIES AND STOCKHOLDERS EQUITY
Current Liabilities:
Short-Term Debt	$	390			$	580
Accounts Payable		5,423				4,813
Accrued Salaries and Related Expenses		1,255				1,115
Sales Taxes Payable		361				326
Deferred Revenue		1,144				1,159
Income Taxes Payable		98				279
Current Installments of Long-Term Debt		1,014				1,765
Other Accrued Expenses		1,584				1,638
Total Current Liabilities		11,269				11,675
Long-Term Debt, excluding current installments		8,650				9,659
Other Long-Term Liabilities		2,137				2,181
Deferred Income Taxes		1,144				1,159
Total Liabilities		23,200				24,674
STOCKHOLDERS EQUITY
Common Stock, par value $0.05; authorized: 10 billion shares; issued: 1.754 billion shares at January 31, 2016 and 1.733 billion shares at February 1, 2015; outstanding: 1.484 billion shares at January 31, 2016 and 1.537 billion shares at February 1, 2015		84				83
Paid-In Capital		6,294				6,038
Retained Earnings		11,629				11,749
Accumulated Other Comprehensive Income		358				83
Treasury Stock, at cost, 270 million shares at January 31, 2016 and 196 million shares at February 1, 2015		(587	)			(392	)
Total Stockholders Equity		17,778				17,395
Total Liabilities and Stockholders Equity	$	40,978			$	42,069

Selected information as on February 2, 2014:

Working capital	$	2,658
Cash balance	$	1,310
Total assets	$	44,394
Stockholders' equity	$	17,794

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 January 31, 2016, and February 1, 2015.

a-2. Compute the quick ratio for the fiscal years ending January 31, 2016, and February 1, 2015.

a-3. Compute the amount of working capital for the fiscal years ending January 31, 2016, and February 1, 2015.

a-4. Compute the percentage change in working capital from the prior year for the fiscal years ending January 31, 2016, and February 1, 2015.

a-5. Compute the percentage change in cash and cash equivalents from the prior year for the fiscal years ending January 31, 2016, and February 1, 2015.