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 EARNINGSFiscal Year Ended⁽¹⁾amounts in millions, except per share dataJanuary

31,2016February

1, 2015February

2, 2014NET SALES$66,188$71,304$77,352Cost of Sales43,74647,29051,332GROSS PROFIT22,44224,01426,020Operating Expenses:Selling, General and Administrative15,89517,84017,049Depreciation and Amortization1,6961,7721,688Total Operating Expenses17,59119,61218,737OPERATING INCOME4,8514,4027,283Interest and Other (Income) Expense:Interest and Investment Income(20)(20)(81)Interest Expense665612685Other(149)149Interest and Other, net794741604EARNINGS BEFORE PROVISION FOR INCOME TAXES4,0573,6616,679Provision for Income Taxes1,3511,2692,407NET EARNINGS$2,706$2,392$4,272Weighted Average Common Shares1,5191,5821,668BASIC EARNINGS PER SHARE$1.78$1.71$2.56Diluted Weighted Average Common Shares1,5311,5901,529DILUTED EARNINGS PER SHARE$1.77$1.50$2.79

⁽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 SHEETSamounts in millions, except share and per share dataJanuary

31, 2016February

1, 2015ASSETSCurrent Assets:Cash and Cash Equivalents$1,275$1,226Receivables, net969985Merchandise Inventories10,20810,713Other Current Assets1,3291,205Total Current Assets13,78114,129Property and Equipment, at cost37,40036,585Less Accumulated Depreciation and Amortization11,74510,168Net Property and Equipment25,65526,417Goodwill1,1741,148Other Assets224400Total Assets$40,834$42,094LIABILITIES AND STOCKHOLDERS' EQUITYCurrent Liabilities:Short-Term Debt$360$570Accounts Payable5,4234,815Accrued Salaries and Related Expenses1,2551,111Sales Taxes Payable356325Deferred Revenue1,1531,158Income Taxes Payable106279Current Installments of Long-Term Debt1,0161,761Other Accrued Expenses1,5771,641Total Current Liabilities11,24611,660Long-Term Debt, excluding current installments8,6479,654Other Long-Term Liabilities2,1382,192Deferred Income Taxes1,1531,158Total Liabilities23,18424,664STOCKHOLDERS' EQUITYCommon 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, 20158281Paid-In Capital6,2916,040Retained Earnings11,51611,775Accumulated Other Comprehensive Income35378Treasury Stock, at cost, 270 million shares at

January 31, 2016 and 196 million shares at February 1, 2015(592)(388)Total Stockholders' Equity17,65017,430Total Liabilities and Stockholders' Equity$40,834$42,094

Selected information as on February 2, 2014:

Working capital$2,658Cash balance$1,310Total assets$44,399Stockholders' equity$17,624

rev: 04_07_2020_QC_CS-207273, CS-207274

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 January 31, 2016, and February 1, 2015.

a-2.Compute the quick ratio for the fiscal years ending January 31, 2016, and February 1, 2015.

a-3.Compute the amount of working capital for the fiscal years ending January 31, 2016, and February 1, 2015.

a-4.Compute the percentage change in working capital from the prior year for the fiscal years ending January 31, 2016, and February 1, 2015.

a-5.Compute the percentage change in cash and cash equivalents from the prior year for the fiscal years ending January 31, 2016, and February 1, 2015.