Question
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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