This Comprehensive Problem is to acquaint you with the content of the 2015 financial statements of Home Depot, Inc., and related disclosutes, excerpts of which are reproduced in Appendix A of this textbook. (The 2015 financial statements are for the fiscal year ended January 31, 2016.) The problem contains three major parts, which are independent of one another: Part Iis designed to familiarize you with the general contents of a company's financial statements: Partl involves analysis of the company's liquidity, and Part till analyzes the trend in its profitability. If you work this problemas a group assignment. each group member should be prepared to discuss the group's findings and conclusions in class. A good starting point for understanding the financial statements of a company such as Home Depot, Inc., is to understand the accounting policies used in preparing those statements. The first note accompanying the financial statements provides a brief description of the major accounting policies the company used. Most of the areas discussed in this note have been covered in this text Part Annual reports include not only comparative financial statements but also other sources of information, such as A mulllyear summary of financial highlights, a summary of key statistics for the past 5 or 10 years Several pages of Notes that accompany the financial statements Reports by management and by the independent auditors in which they express their respective responsibilities for the financial statements Instructions: Answer each of the following questions and explain where in the statements, notes, or other sections of the annual report you located the information used in your answer How many years are covered in each of the primary comparative financial statements? Were all of these statements audited? Name the auditors. What were the auditors' conclusions concerning these statements? Home Depot, Inc.combines its statement of retained earnings with another financial statement. Where are the details about changes in the amount of retained earnings found? Over the three years presented. have the company's annual net cash flows been positive or negative from operating activities, investing activities and (3) financing activities? Has the company's cash balance increased or decreased during each of these three years? This Comprehensive Problem is to acquaint you with the content of the 2015 financial statements of Home Depot, Inc., and related disclosutes, excerpts of which are reproduced in Appendix A of this textbook. (The 2015 financial statements are for the fiscal year ended January 31, 2016.) The problem contains three major parts, which are independent of one another: Part Iis designed to familiarize you with the general contents of a company's financial statements: Partl involves analysis of the company's liquidity, and Part till analyzes the trend in its profitability. If you work this problemas a group assignment. each group member should be prepared to discuss the group's findings and conclusions in class. A good starting point for understanding the financial statements of a company such as Home Depot, Inc., is to understand the accounting policies used in preparing those statements. The first note accompanying the financial statements provides a brief description of the major accounting policies the company used. Most of the areas discussed in this note have been covered in this text Part Annual reports include not only comparative financial statements but also other sources of information, such as A mulllyear summary of financial highlights, a summary of key statistics for the past 5 or 10 years Several pages of Notes that accompany the financial statements Reports by management and by the independent auditors in which they express their respective responsibilities for the financial statements Instructions: Answer each of the following questions and explain where in the statements, notes, or other sections of the annual report you located the information used in your answer How many years are covered in each of the primary comparative financial statements? Were all of these statements audited? Name the auditors. What were the auditors' conclusions concerning these statements? Home Depot, Inc.combines its statement of retained earnings with another financial statement. Where are the details about changes in the amount of retained earnings found? Over the three years presented. have the company's annual net cash flows been positive or negative from operating activities, investing activities and (3) financing activities? Has the company's cash balance increased or decreased during each of these three years