The following excerpt was taken from The Home Depot, Inc. 2012 Annual Report (for the fiscal year ended February 3, 2013).

Analyze:
1. What percentage of total assets is made up of cash and cash equivalents at February 3, 2013?
2. Cash receipt and cash payment transactions affect the total value of a company's assets. By what amount did the category "Cash and cash equivalents" change from January 29, 2012 to February 3, 2013?
3. If accountants at The Home Depot, Inc. failed to record cash receipts of $125,000 on February 3, 2013, what impact would this error have on the balance sheet category "Cash and cash equivalents"?

Transcribed Image Text:

The Home Depot, Inc. Consolidated Balance Sheets As of February 3, 2013 January 29, 2012 amounts in millions ASSETS Current Assets: Cash and cash equivalents 2,494 1,987 $40,518 Total assets $41,084 Cash and Cash Equivalents: Short-term investments that have maturities of three months or less when purchased are considered to be cash equivalents