This project is to acquaint you with the content of the fiscal year financial statements of Home Depot, Inc. The financial statements are for the fiscal year ended January The project contains three major parts, which are independent of one another.Part IAnnual reports include not only comparative financial statements, but also other sources of information such as:A multiyear summary of selected information comparing key financial and other statistics for several years.Selected 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.Discussion and analysis that present managements interpretation of the above information.Answer each of the following questions and explain where in the statements, notes, or other sections of the annual report you located the information sued in your answer.How many years are covered in each of the primary comparative financial statements?Name the auditors.Home Depot, Inc., combines its statement of retained earnings with another financial statement. Where are details about changes in the amount of retained earnings found?Over the years presented, have the companys annual net cash flows been positive or negative from operating activities, investing activities, and financing activities?Has the companys cash balance increased or decreased during each of these years?Part IIAssume that you are the credit manager of a mediumsize supplier of building materials and related products. Home Depot wants to make credit purchases from your company, with payment due in days.As general background, read the first note to the financial statements, Summary of Significant Accounting Policies. Next, compute the following for the and fiscal years. Round your current and quick ratios to two decimal places. Some calculations may require information from the selected financial information and management discussion and analysis.Current ratioQuick ratio.Amount of working capital.Change in working capital from the prior year. Working capital at the beginning of FY was $ million.On the basis of your analysis in part II a does the companys liquidity appear to have increased or decreased during the most recent fiscal year? Does the change in cash and cash equivalents affect your decision?Part IIIAs general background, study the selected financial statements.Compute the following for the and fiscal years, rounding percents to one decimal place. Some calculations may require information from the selected financial information.Percent change in net sales relative to the prior yearPercent change in net earnings.Gross profit rate.Net income as a percent of sales.Return on average total assets. Total Assets at the beginning of FY was $ million.Write a statement that describes your conclusions concerning trends in Home Depots profitability during the period covered in your analysis in part III a above. Justify your conclusions