The following financial statement excerpt is taken from the 2009 Annual Report (for the fiscal year ended January 31, 2010) for The Home Depot, Inc.:

1. The Cost of Sales amount on The Home Depot, Inc., consolidated statements of earnings represents the net cost of the goods that were sold for the period. For 2010, what percentage of net sales was the cost of sales? For fiscal 2009?
2. What factors might affect a merchandising company's cost of sales from one period to another?
Analyze Online:
On the The Home Depot, Inc., Web site (www.homedepot.com), locate the Investor Relations' section.
3. Review the consolidated statements of operations found in the current year's annual report.
4. What amount is reported for cost of sales?
5. What amount is reported for net sales?

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Consolidated Statements of Earnings For the year ended January 31, 2010 February 1, 2009 (In millions) Net Sales Cost of Sales Gross Profit 66,176 43,764 22,412 $ 71,288 47,298 23,990