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 January 31, 2016 February 1, 2015 February 2, 2014 NET SALES $ 88,519 $ 83,176 $ 78,812 Cost of Sales 58,254 54,787 51,897 GROSS PROFIT 30,265 28,389 26,915 Operating Expenses Selling, General and Administrative 16,801 16,280 16,122 Depreciation and Amortization 1,690 1,640 1,627 Total Operating Expenses 18,491 17,920 17,749 OPERATING INCOME 11,774 10,469 9,166 Interest and Other (Income) Expense Interest and Investment Income (166 ) (337 ) (12 ) Interest Expense 919 830 711 Interest and Other, net 753 493 699 EARNINGS BEFORE PROVISION FOR INCOME TAXES 11,021 9,976 8,467 Provision for Income Taxes 4,012 3,631 3,082 NET EARNINGS $ 7,009 $ 6,345 $ 5,385 Weighted Average Common Shares 1,277 1,338 1,425 BASIC EARNINGS PER SHARE $ 5 49 $ 4 74 $ 3 78 Diluted Weighted Average Common Shares 1,283 1,346 1,434 DILUTED EARNINGS PER SHARE $ 5 46 $ 4 71 $ 3 76 (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 SHEETS amounts in millions, except share and per share data January 31, 2016 February 1, 2015 ASSETS Current Assets Cash and Cash Equivalents $ 2,216 $ 1,723 Receivables, net 1,890 1,484 Merchandise Inventories 11,809 11,079 Other Current Assets 1,078 1,016 Total Current Assets 16,993 15,302 Property and Equipment, at cost 39,266 38,513 Less Accumulated Depreciation and Amortization 17,075 15,793 Net Property and Equipment 22,191 22,720 Goodwill 2,102 1,353 Other Assets 1,263 571 Total Assets $ 42,549 $ 39,946 LIABILITIES AND STOCKHOLDERS EQUITY Current Liabilities Short Term Debt $ 350 $ 290 Accounts Payable 6,565 5,807 Accrued Salaries and Related Expenses 1,515 1,391 Sales Taxes Payable 476 434 Deferred Revenue 1,566 1,468 Income Taxes Payable 34 35 Current Installments of Long Term Debt 77 38 Other Accrued Expenses 1,943 1,806 Total Current Liabilities 12,526 11,269 Long Term Debt, excluding current installments 20,888 16,869 Other Long Term Liabilities 1,965 1,844 Deferred Income Taxes 854 642 Total Liabilities 36,233 30,624 STOCKHOLDERS EQUITY Common Stock, par value $0 05 authorized 10 billion shares issued 1 772 billion shares at January 31, 2016 and 1 768 billion shares at February 1, 2015 outstanding 1 252 billion shares at January 31, 2016 and 1 307 billion shares at February 1, 2015 88 88 Paid In Capital 9,347 8,885 Retained Earnings 30,973 26,995 Accumulated Other Comprehensive Loss (898 ) (452 ) Treasury Stock, at cost, 520 million shares at January 31, 2016 and 461 million shares at February 1, 2015 (33,194 ) (26,194 ) Total Stockholders Equity 6,316 9,322 Total Liabilities and Stockholders Equity $ 42,549 $ 39,946 Selected information as on February 2, 2014 Working capital $ 4,530 Cash balance $ 1,929 Total assets $ 40,518 Stockholders' equity $ 12,522 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

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 03, 2024

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	January 31, 2016			February 1, 2015			February 2, 2014
NET SALES	$	88,519		$	83,176		$	78,812
Cost of Sales		58,254			54,787			51,897
GROSS PROFIT		30,265			28,389			26,915
Operating Expenses:
Selling, General and Administrative		16,801			16,280			16,122
Depreciation and Amortization		1,690			1,640			1,627
Total Operating Expenses		18,491			17,920			17,749
OPERATING INCOME		11,774			10,469			9,166
Interest and Other (Income) Expense:
Interest and Investment Income		(166	)		(337	)		(12	)
Interest Expense		919			830			711
Interest and Other, net		753			493			699
EARNINGS BEFORE PROVISION FOR INCOME TAXES		11,021			9,976			8,467
Provision for Income Taxes		4,012			3,631			3,082
NET EARNINGS	$	7,009		$	6,345		$	5,385
Weighted Average Common Shares		1,277			1,338			1,425
BASIC EARNINGS PER SHARE	$	5.49		$	4.74		$	3.78
Diluted Weighted Average Common Shares		1,283			1,346			1,434
DILUTED EARNINGS PER SHARE	$	5.46		$	4.71		$	3.76

⁽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 SHEETS
amounts in millions, except share and per share data	January 31, 2016			February 1, 2015
ASSETS
Current Assets:
Cash and Cash Equivalents	$	2,216		$	1,723
Receivables, net		1,890			1,484
Merchandise Inventories		11,809			11,079
Other Current Assets		1,078			1,016
Total Current Assets		16,993			15,302
Property and Equipment, at cost		39,266			38,513
Less Accumulated Depreciation and Amortization		17,075			15,793
Net Property and Equipment		22,191			22,720
Goodwill		2,102			1,353
Other Assets		1,263			571
Total Assets	$	42,549		$	39,946
LIABILITIES AND STOCKHOLDERS EQUITY
Current Liabilities:
Short-Term Debt	$	350		$	290
Accounts Payable		6,565			5,807
Accrued Salaries and Related Expenses		1,515			1,391
Sales Taxes Payable		476			434
Deferred Revenue		1,566			1,468
Income Taxes Payable		34			35
Current Installments of Long-Term Debt		77			38
Other Accrued Expenses		1,943			1,806
Total Current Liabilities		12,526			11,269
Long-Term Debt, excluding current installments		20,888			16,869
Other Long-Term Liabilities		1,965			1,844
Deferred Income Taxes		854			642
Total Liabilities		36,233			30,624
STOCKHOLDERS EQUITY
Common Stock, par value $0.05; authorized: 10 billion shares; issued: 1.772 billion shares at January 31, 2016 and 1.768 billion shares at February 1, 2015; outstanding: 1.252 billion shares at January 31, 2016 and 1.307 billion shares at February 1, 2015		88			88
Paid-In Capital		9,347			8,885
Retained Earnings		30,973			26,995
Accumulated Other Comprehensive Loss		(898	)		(452	)
Treasury Stock, at cost, 520 million shares at January 31, 2016 and 461 million shares at February 1, 2015		(33,194	)		(26,194	)
Total Stockholders Equity		6,316			9,322
Total Liabilities and Stockholders Equity	$	42,549		$	39,946

Selected information as on February 2, 2014:


Working capital	$	4,530
Cash balance	$	1,929
Total assets	$	40,518
Stockholders' equity	$	12,522

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.