Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 $ 66,191 $ 71,306 $ 77,369
Cost of Sales 43,759 47,290 51,352
GROSS PROFIT 22,432 24,016 26,017
Operating Expenses:
Selling, General and Administrative 15,893 17,843 17,045
Depreciation and Amortization 1,688 1,768 1,699
Total Operating Expenses 17,581 19,611 18,744
OPERATING INCOME 4,851 4,405 7,273
Interest and Other (Income) Expense:
Interest and Investment Income (27 ) (27 ) (83 )
Interest Expense 667 616 679
Other (161 ) 161
Interest and Other, net 801 750 596
EARNINGS BEFORE PROVISION FOR INCOME TAXES 4,050 3,655 6,677
Provision for Income Taxes 1,354 1,274 2,405
NET EARNINGS $ 2,696 $ 2,381 $ 4,272
Weighted Average Common Shares 1,579 1,642 1,728
BASIC EARNINGS PER SHARE $ 1.71 $ 1.64 $ 2.47
Diluted Weighted Average Common Shares 1,591 1,650 1,589
DILUTED EARNINGS PER SHARE $ 1.69 $ 1.44 $ 2.69

(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 $ 1,278 $ 1,230
Receivables, net 975 976
Merchandise Inventories 10,203 10,753
Other Current Assets 1,334 1,202
Total Current Assets 13,790 14,161
Property and Equipment, at cost 37,423 36,517
Less Accumulated Depreciation and Amortization 11,745 10,183
Net Property and Equipment 25,678 26,334
Goodwill 1,182 1,153
Other Assets 243 401
Total Assets $ 40,893 $ 42,049
LIABILITIES AND STOCKHOLDERS EQUITY
Current Liabilities:
Short-Term Debt $ 400 $ 590
Accounts Payable 5,413 4,820
Accrued Salaries and Related Expenses 1,247 1,119
Sales Taxes Payable 343 332
Deferred Revenue 1,146 1,150
Income Taxes Payable 101 288
Current Installments of Long-Term Debt 1,015 1,762
Other Accrued Expenses 1,582 1,641
Total Current Liabilities 11,247 11,702
Long-Term Debt, excluding current installments 8,642 9,649
Other Long-Term Liabilities 2,121 2,179
Deferred Income Taxes 1,146 1,150
Total Liabilities 23,156 24,680
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 81 80
Paid-In Capital 6,292 6,046
Retained Earnings 11,594 11,704
Accumulated Other Comprehensive Income 358 86
Treasury Stock, at cost, 270 million shares at January 31, 2016 and 196 million shares at February 1, 2015 (588 ) (375 )
Total Stockholders Equity 17,737 17,369
Total Liabilities and Stockholders Equity $ 40,893 $ 42,049

Selected information as on February 2, 2014:

Working capital $ 2,658
Cash balance $ 1,300
Total assets $ 44,394
Stockholders' equity $ 17,719

a-1. Compute the percentage change relative to the previous year in net sales for the fiscal years ending February 1, 2015, and January 31, 2016.

a-2. Compute the percentage change in net earnings for the fiscal years ending February 1, 2015, and January 31, 2016.

a-3. Compute the gross profit rate for the fiscal years ending February 1, 2015, and January 31, 2016.

a-4. Compute the net income as a percentage of sales for the fiscal years ending February 1, 2015, and January 31, 2016.

a-5. Compute the return on average total assets for the fiscal years ending February 1, 2015, and January 31, 2016.

a-6. Compute the return on average total equity for the fiscal years ending February 1, 2015, and January 31, 2016.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Anti Audit Warfare

Authors: Business Management Daily

7th Edition

1540747182, 978-1540747181

More Books

Students also viewed these Accounting questions

Question

socialist egalitarianism which resulted in wage levelling;

Answered: 1 week ago

Question

soyuznye (all-Union, controlling enterprises directly from Moscow);

Answered: 1 week ago