Question
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
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 | February 3, 2013 | January 29, 2012 | January 30, 2011 | |||
NET SALES | $ | 66,184 | $ | 71,304 | $ | 77,369 |
Cost of Sales |
| 43,747 |
| 47,281 |
| 51,343 |
| ||||||
GROSS PROFIT |
| 22,437 |
| 24,023 |
| 26,026 |
Operating Expenses: |
|
|
|
|
|
|
Selling, General and Administrative |
| 15,894 |
| 17,839 |
| 17,041 |
Depreciation and Amortization |
| 1,689 |
| 1,779 |
| 1,688 |
| ||||||
Total Operating Expenses |
| 17,583 |
| 19,618 |
| 18,729 |
| ||||||
OPERATING INCOME |
| 4,854 |
| 4,405 |
| 7,297 |
Interest and Other (Income) Expense: |
|
|
|
|
|
|
Interest and Investment Income |
| (23) |
| (23) |
| (77) |
Interest Expense |
| 666 |
| 614 |
| 680 |
Other |
| 144 |
| 144 |
|
|
| ||||||
Interest and Other, net |
| 787 |
| 735 |
| 603 |
| ||||||
EARNINGS BEFORE PROVISION FOR INCOME TAXES |
| 4,067 |
| 3,670 |
| 6,694 |
Provision for Income Taxes |
| 1,360 |
| 1,260 |
| 2,403 |
| ||||||
NET EARNINGS | $ | 2,707 | $ | 2,410 | $ | 4,291 |
| ||||||
Weighted Average Common Shares |
| 1,539 |
| 1,602 |
| 1,688 |
BASIC EARNINGS PER SHARE | $ | 1.76 | $ | 1.69 | $ | 2.54 |
Diluted Weighted Average Common Shares |
| 1,551 |
| 1,610 |
| 1,549 |
DILUTED EARNINGS PER SHARE | $ | 1.75 | $ | 1.50 | $ | 2.77 |
(1) Fiscal year ended February 3, 2013 includes 53 weeks. Fiscal years ended January 29, 2012 and January 30, 2011 include 52 weeks. |
THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS | ||||
amounts in millions, except share and per share data | February 3, 2013 | January 29, 2012 | ||
ASSETS |
|
|
|
|
Current Assets: |
|
|
|
|
Cash and Cash Equivalents | $ | 1,436 | $ | 526 |
Receivables, net |
| 968 |
| 972 |
Merchandise Inventories |
| 10,253 |
| 10,698 |
Other Current Assets |
| 1,333 |
| 1,197 |
| ||||
Total Current Assets |
| 13,990 |
| 13,393 |
| ||||
Property and Equipment, at cost |
| 37,479 |
| 36,572 |
Less Accumulated Depreciation and Amortization |
| 11,740 |
| 10,233 |
| ||||
Net Property and Equipment |
| 25,739 |
| 26,339 |
| ||||
Notes Receivable |
| 34 |
| 37 |
Goodwill |
| 1,177 |
| 1,142 |
Other Assets |
| 232 |
| 416 |
| ||||
Total Assets | $ | 41,172 | $ | 41,327 |
| ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
|
|
|
|
Current Liabilities: |
|
|
|
|
Accounts Payable | $ | 4,849 | $ | 4,820 |
Accrued Salaries and Related Expenses |
| 1,252 |
| 1,110 |
Sales Taxes Payable |
| 348 |
| 318 |
Deferred Revenue |
| 1,143 |
| 1,151 |
Income Taxes Payable |
| 102 |
| 287 |
Current Installments of Long-Term Debt |
| 1,019 |
| 1,756 |
Other Accrued Expenses |
| 1,570 |
| 1,643 |
| ||||
Total Current Liabilities |
| 10,283 |
| 11,085 |
| ||||
Long-Term Debt, excluding current installments |
| 8,655 |
| 9,660 |
Other Long-Term Liabilities |
| 2,140 |
| 2,182 |
Deferred Income Taxes |
| 317 |
| 354 |
| ||||
Total Liabilities |
| 21,395 |
| 23,281 |
| ||||
STOCKHOLDERS EQUITY |
|
|
|
|
Common Stock, par value $0.05; authorized: 10 billion shares; issued: 1.754 billion shares at February 3, 2013 and 1.733 billion shares at January 29, 2012; outstanding: 1.484 billion shares at February 3, 2013 and 1.537 billion shares at January 29, 2012 |
| 80 |
| 79 |
Paid-In Capital |
| 6,297 |
| 6,038 |
Retained Earnings |
| 13,633 |
| 12,381 |
Accumulated Other Comprehensive Income |
| 355 |
| (77) |
Treasury Stock, at cost, 270 million shares at February 3, 2013 and 196 million shares at January 29, 2012 |
| (588) |
| (375) |
| ||||
Total Stockholders Equity |
| 19,777 |
| 18,046 |
| ||||
Total Liabilities and Stockholders Equity | $ | 41,172 | $ | 41,327 |
| ||||
Selected information as on January 31, 2011: |
|
|
|
Working capital | $ | 1,966 |
Cash and cash equivalents | $ | 594 |
Total assets | $ | 44,404 |
Total stockholders' equity | $ | 17,774 |
a-1. Compute the percentage change relative to the previous year in net sales for the fiscal years ending February 3, 2013, and January 29, 2012. (Round your percentage answers to 1 decimal place. i.e. 0.1234 as 12.3%.)
a-2. Compute the percentage change in net earnings for the fiscal years ending February 3, 2013, and January 29, 2012. (Round your percentage answers to 1 decimal place. i.e. 0.1234 as 12.3%.)
a-3. Compute the Gross profit rate for the fiscal years ending February 3, 2013, and January 29, 2012. (Round your percentage answers to 1 decimal place. i.e. 0.1234 as 12.3%
a-4. Compute the net income as a percentage of sales for the fiscal years ending February 3, 2013, and January 29, 2012 (Round your percentage answers to 1 decimal place. i.e. 0.1234 as 12.3%.)
a-5. Compute the return on average total assets for the fiscal years ending February 3, 2013, and January 29, 2012. (Round your percentage answers to 1 decimal place. i.e. 0.1234 as 12.3%.)
a-6. Compute the return on average total equity for the fiscal years ending February 3, 2013, and January 29, 2012. (Round your percentage answers to 1 decimal place. i.e. 0.1234 as 12.3%.)
Required information 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, 2013, and January 29, 2012. (Round your answers to 2 decimal places.)
a-2. Compute the quick ratio for the fiscal years ending February 3, 2013, and January 29, 2012. (Round your answers to 2 decimal places.)
a-3. Compute the amount of working capital for the fiscal years ending February 3, 2013, and January 29, 2012
. a-4. Compute the percentage change in working capital from the prior year for the fiscal years ending February 3, 2013, and January 29, 2012. (Round your answers to 2 decimal place. i.e. 0.1234 as 12.34%.)
a-5. Compute the percentage change in cash and cash equivalents from the prior year for the fiscal years ending February 3, 2013, and January 29, 2012. (Round your answers to 2 decimal place. i.e. 0.1234 as 12.34%.)
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