The following are the balance sheet and consolidated statement of earnings of The Home Depot, Incorporated:

THE HOME DEPOT, INCORPORATED

CONSOLIDATED BALANCE SHEETS

February $3,2019$ January $28,2018$ January $29,2017$

millions, except per share data

Assets

Current Assets:

Cash and Cash Equivalents $ $1,778$ $ $3,595$ $ $2,538$

Receivables, net $1,9361,9522,029$

Merchandise Inventories $13,92512,74812,549$

Other Current Assets $890638608$

Total Current Assets $18,52918,93317,724$

Net Property and Equipment $22,37522,07521,914$

Goodwill $2,2522,2752,093$

Other Assets $8471,2461,235$

Total Assets $ $44,003$ $ $44,52942,966$

Liabilities and stockholders$$ equity

Current Liabilities:

Short$-$Term Debt $ $1,339$ $ $1,559$ $ $710$

Accounts Payable $7,7557,2447,000$

Accrued Salaries and Related Expenses $1,5061,6401,484$

Sales Taxes Payable $656520508$

Deferred Revenue $1,7821,8051,669$

Income Taxes Payable $115425$

Current Installments of Long$-$Term Debt $1,0561,202542$

Other Accrued Expenses $2,6112,1702,195$

Total Current Liabilities $16,71616,19414,133$

Long$-$Term Debt, excluding current installments $26,80724,26722,349$

Deferred Income Taxes $491440296$

Other Long$-$Term Liabilities $1,8672,1741,855$

Total Liabilities $45,88143,07538,633$

Common stock, par value $$0\mathrm{.}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 $29,2019898988$

Paid$-$In Capital $10,57810,1929,787$

Retained Earnings $46,42339,93535,519$

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 $(1,878)1,4544,333$

Total Liabilities and Stockholders$$ Equity $ $44,003$ $ $44,529$ $ $42,966$

THE HOME DEPOT, INCORPORATED

CONSOLIDATED STATEMENTS OF EARNINGS

Fiscal $2018$ Fiscal $2017$ Fiscal $2016$

in millions, except per share data

Net sales $ $108,203$ $ $100,904$ $ $94,595$

Cost of Sales $71,04366,54862,282$

Gross profit $37,16034,35632,313$

Operating Expenses:

Selling, General and Administrative $19,51317,86417,132$

Depreciation and Amortization $1,8701,8111,754$

Impairment loss $247$

Total Operating Expenses $21,63019,67518,886$

Operating income $15,53014,68113,427$

Interest and other $($income$)$ expense:

Interest and investment income $(93)(74)(36)$

Interest expense $1,0511,057972$

Other $16$

Interest and other, net $974983936$

Earnings before provision for income taxes $14,55613,69812,491$

Provision for Income Taxes $3,4355,0684,534$

Net earnings $ $11,121$ $ $8,630$ $ $7,957$

Basic weighted average common shares $1,1371,1781,229$

Basic earnings per share $ $9\mathrm{.}78$ $ $7\mathrm{.}33$ $ $6\mathrm{.}47$

Diluted weighted average common shares $1,1431,1841,234$

Diluted earnings per share $ $9\mathrm{.}73$ $ $7\mathrm{.}29$ $ $6\mathrm{.}45$

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 $28,2018.$