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The following are the balance sheet and consolidated statement of earnings of The Home Depot, Inc. THE HOME DEPOT, INC. CONSOLIDATED BALANCE SHEETS millions, except

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

THE HOME DEPOT, INC. CONSOLIDATED BALANCE SHEETS
millions, except per share data February 3, 2019 January 28, 2018 January 29, 2017
Assets
Current Assets:
Cash and Cash Equivalents $ 1,778 $ 3,595 $ 2,538
Receivables, net 1,936 1,952 2,029
Merchandise Inventories 13,925 12,748 12,549
Other Current Assets 890 638 608
Total Current Assets 18,529 18,933 17,724
Net Property and Equipment 22,375 22,075 21,914
Goodwill 2,252 2,275 2,093
Other Assets 847 1,246 1,235
Total Assets $ 44,003 $ 44,529 42,966
Liabilities and stockholders equity
Current Liabilities:
Short-Term Debt $ 1,339 $ 1,559 $ 710
Accounts Payable 7,755 7,244 7,000
Accrued Salaries and Related Expenses 1,506 1,640 1,484
Sales Taxes Payable 656 520 508
Deferred Revenue 1,782 1,805 1,669
Income Taxes Payable 11 54 25
Current Installments of Long-Term Debt 1,056 1,202 542
Other Accrued Expenses 2,611 2,170 2,195
Total Current Liabilities 16,716 16,194 14,133
Long-Term Debt, excluding current installments 26,807 24,267 22,349
Deferred Income Taxes 491 440 296
Other Long-Term Liabilities 1,867 2,174 1,855
Total Liabilities 45,881 43,075 38,633
Common stock, par value $0.05; authorized: 10,000 shares; issued: 1,782 at February 3, 2019, 1,780 shares at January 28, 2018; and 1,776 shares at January 29, 2017;outstanding: 1,105 shares at February 3, 2019, 1,158 shares at January 28, 2018 and 1,203 shares at January 29, 2019 89 89 88
Paid-In Capital 10,578 10,192 9,787
Retained Earnings 46,423 39,935 35,519
Accumulated Other Comprehensive Loss (772 ) (566 ) (867 )
Treasury stock, at cost, 677 shares at February 3, 2019, 622 shares at January 28, 2018 and 573 shares at January 29, 2017 (58,196 ) (48,196 ) (40,194 )
Total stockholders (deficit) equity (1,878 ) 1,454 4,333
Total Liabilities and Stockholders Equity $ 44,003 $ 44,529 $ 42,966

THE HOME DEPOT, INC. CONSOLIDATED STATEMENTS OF EARNINGS
in millions, except per share data Fiscal 2018 Fiscal 2017 Fiscal 2016
Net sales $ 108,203 $ 100,904 $ 94,595
Cost of Sales 71,043 66,548 62,282
Gross profit 37,160 34,356 32,313
Operating Expenses:
Selling, General and Administrative 19,513 17,864 17,132
Depreciation and Amortization 1,870 1,811 1,754
Impairment loss 247
Total Operating Expenses 21,630 19,675 18,886
Operating income 15,530 14,681 13,427
Interest and other (income) expense:
Interest and investment income (93 ) (74 ) (36 )
Interest expense 1,051 1,057 972
Other 16
Interest and other, net 974 983 936
Earnings before provision for income taxes 14,556 13,698 12,491
Provision for Income Taxes 3,435 5,068 4,534
Net earnings $ 11,121 $ 8,630 $ 7,957
Basic weighted average common shares 1,137 1,178 1,229
Basic earnings per share $ 9.78 $ 7.33 $ 6.47
Diluted weighted average common shares 1,143 1,184 1,234
Diluted earnings per share $ 9.73 $ 7.29 $ 6.45

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.

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