What does Home Depot' s 2015 Form 10-K communicate about its inventory? Home Depot (HD) is a retailer of home improvement and constraction products. Home Depot is currently the world's largest home improvement retailer with revenaes exceeding $83 billion in its fiscal year ending February 1, 2015 The most commonly used inventory valuation methods are first-in first-out, last-in first- out, and average or weighted average cost. See the excerpts to follow from Home Depot's 2015 Form s0-K: its Consolidated Balance Sheet and a section from its Notes to Pinancial Statements (page 35-36) Which method does Home Depot use to value its inventory? What is shrink and how can a company prevent it? What is the main difference between the FIFO, LIFO, and weighted average cost inventory valuation methods? What benefits would using the FIFO method for inventory valuation provide for Home Depot? 2. 3. Copyright O2015 by Dr. Wendy Tietz, h Home Depet Partsial Comolidated Balance Sheet (assets) from p. 32 of Form 10-K as of February 1, THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ASSETS 1,723 1,929 ,398 1,057 11,879 15.302 8 513 15,793 9,064 15,716 Net Propentyand Equipme