THE HOME DEPOT, INC. CONSOLIDATED BALANCE SHEETS February 3, 2019 January 28, 2018 in millions, except per share data Assets Current assets: Cash and cash equivalents 1,778 $ 3,595 Receivables, net 1,936 1,952 Merchandise inventories 13,925 12,748 Other current assets 890 638 Total current assets 18,529 18,933 22,375 Net property and equipment 22,075 Goodwill 2,252 2,275 Other assets 847 1,246 Total assets 44,003 44,529 Liabilities and Stockholders' Equity Current liabilities: 1,339 $ Short-term debt $ 1,559 Accounts payable Accrued salaries and related expenses 7,755 7,244 1,506 1,640 Sales taxes payable 656 52 Deferred revenue 1,782 1,805 Income taxes payable 11 54 Current installments of long-term debt 1,056 1,202 Other accrued expenses 2,611 2,170 Total current liabilities 16,716 16,194 Long-term debt, excluding current installments 26,807 24,267 Deferred income taxes 491 440 Other long-term liabilities 1,867 2,174 Total liabilities 45,881 43,075 Common stock, par value $0.05; authorized: 10,000 shares; issued: 1,782 at February 3, 2019 and 1,780 shares at January 28, 2018; outstanding: 1,105 shares at February 3, 2019 and 1,158 shares at January 28, 2018 89 89 Paid-in capital Retained earnings 10,578 10,192 46,423 39,935 Accumulated other comprehensive loss (772) (566) Treasury stock, at cost, 677 shares at February 3, 2019 and 622 shares at January 28, 2018 (58,196) (48,196) Total stockholders' (deficit) equity Total liabilities and stockholders' equity (1,878) 1,454 44,003 $ 44,529 THE HOME DEPOT, INC CONSOLIDATED STATEMENTS OF EARNINGS Fiscal Fiscal Fiscal in millions, except per share data 2018 2017 2016 Net sales $ 108,203 100,904 $ 94,595 66,548 Cost of sales 71,043 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 Total operating expenses 247 21,630 19,675 18,886 14,681 Operating income 15,530 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. See accompanying notes to consolidated financial statements THE HOME DEPOT, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Fiscal Fiscal Fiscal in millions 2018 2017 2016 $ 8,630 $ Net earnings 11,121 $ 7,957 Other comprehensive (loss) income: Foreign currency translation adjustments (267) 311 (3) Cash flow hedges, net of tax 53 (1) (9) 34 Other 8 301 Total other comprehensive (loss) income (206) 31 S Comprehensive income 10,915 $ 8,931 $ 7,988 Fiscal 2018 includes 53 weeks. Fiscal 2017 and fiscal 2016 include 52 weeks. See accompanying notes to consolidated financial statements THE HOME DEPOT, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS'EQUITY Fiscal Fiscal Fiscal in millions 2018 2017 2016 Common Stock: Balance at beginning of year 89 88 88 Shares issued under employee stock plans Balance at end of year 1 89 89 Paid-in Capital: Balance at beginning of year 10,192 9,787 9,347 Shares issued under employee stock plans Tax effect of stock-based compensation 104 132 76 97 Stock-based compensation expense Balance at end of year 282 273 267 10,578 10,192 9,787 Retained Earnings: Balance at beginning of year Cumulative effect of accounting change 39,935 35,519 30,973 75 Net earnings 8,630 11,121 7,957 Cash dividends (4,704) (4,212) (3,404) Other (4) (2) (7) Balance at end of year 46,423 39,935 35,519 Accumulated Other Comprehensive Income (Loss): Balance at beginning of year (566) (867) (898) Foreign currency translation adjustments (267) 311 (3) Cash flow hedges, net of tax 53 (1) 34 Other 8 (9) Balance at end of year (772) (566) (867) Treasury Stock: Balance at beginning of year (48,196) (40,194) (33,194) (7,000) Repurchases of common stock Balance at end of year (10,000) (8,002) (58,196) (48,196) (40,194) Total stockholders' (deficit) equity (1,878) S 1,454 $ 4,333 Fiscal 2018 includes 53 weeks. Fiscal 2017 and fiscal 2016 include 52 weeks. See accompanying notes to consolidated financial statements. 88 Finding Financial Information Refer to the 2018 fiscal year-end financial statements of The Home Depot and Lowe's found in the Course Content/Project folder in Harvey. (Note: The Home Depot's 2018 fiscal year runs from January 29, 2018 to February 3, 2019. Lowe's 2018 fiscal year runs from February 3, 2018 to February 1, 2019.) LO 1-1, 1-2, 1-3 HOME Required: 1. What amount of net income was reported (in millions) for the year ended February 3, 2019? What amount of sales revenue (in millions) was earned for the year ended February 3, 2019? 2. 3. What was the cost (in millions) of the company's inventory on February 3, 2019? 4. How much cash (in millions) does The Home Depot have on February 3, 2019