Reference no: EM1373662

The subsequent are the consolidated statement of earnings and the balance sheet of Home Depot, Inc and Subsidiaries.

THE HOME DEPOT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
Fiscal Year Ended

January 31,
2010 February 1,
2009 February 3,
2008
NET SALES $ 66,176 $ 71,288 $ 77,349
Cost of Sales 43,764 47,298 51,352

GROSS PROFIT 22,412 23,990 25,997
Operating Expenses:
Selling, General and Administrative 15,902 17,846 17,053
Depreciation and Amortization 1,707 1,785 1,702

Total Operating Expenses 17,609 19,631 18,755

OPERATING INCOME 4,803 4,359 7,242
Interest and Other (Income) Expense:
Interest and Investment Income (18) (18) (74)
Interest Expense 676 624 696
Other 163 163 -

Interest and Other, net 821 769 622

EARNINGS FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES 3,982 3,590 6,620
Provision for Income Taxes 1,362 1,278 2,410

EARNINGS FROM CONTINUING OPERATIONS 2,620 2,312 4,210
EARNINGS (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX 41 (52) 185

NET EARNINGS $ 2,661 $ 2,260 $ 4,395

THE HOME DEPOT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
January 31,
2010 February 1,
2009
ASSETS
Current Assets:
Cash and Cash Equivalents $ 1,421 $ 519
Short-Term Investments 6 6
Receivables, net 964 972
Merchandise Inventories 10,188 10,673
Other Current Assets 1,321 1,192

Total Current Assets 13,900 13,362

Property and Equipment, at cost:
Land 8,451 8,301
Buildings 17,391 16,961
Furniture, Fixtures and Equipment 9,091 8,741
Leasehold Improvements 1,383 1,359
Construction in Progress 525 625
Capital Leases 504 490

37,345 36,477
Less Accumulated Depreciation and Amortization 11,795 10,243

Net Property and Equipment 25,550 26,234

Notes Receivable 33 36
Goodwill 1,171 1,134
Other Assets 223 398

Total Assets $ 40,877 $ 41,164

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts Payable $ 4,863 $ 4,822
Accrued Salaries and Related Expenses 1,263 1,129
Sales Taxes Payable 362 337
Deferred Revenue 1,158 1,165
Income Taxes Payable 108 289
Current Installments of Long-Term Debt 1,020 1,767
Other Accrued Expenses 1,589 1,644

Total Current Liabilities 10,363 11,153

Long-Term Debt, excluding current installments 8,662 9,667
Other Long-Term Liabilities 2,140 2,198
Deferred Income Taxes 319 369

Total Liabilities 21,484 23,387

STOCKHOLDERS' EQUITY
Common Stock, par value $0.05; authorized: 10 billion shares;
issued: 1.716 billion shares at January 31, 2010 and 1.707 billion shares at February 1, 2009; outstanding: 1.698 billion shares at January 31, 2010 and 1.696 billion shares at February 1, 2009
86 85
Paid-In Capital 6,304 6,048
Retained Earnings 13,226 12,093
Accumulated Other Comprehensive Income (Loss) 362 (77)
Treasury Stock, at cost, 18 million shares at January 31, 2010 and
11 million shares at February 1, 2009
(585) (372)

Total Stockholders' Equity 19,393 17,777

Total Liabilities and Stockholders' Equity $ 40,877 $ 41,164

Selected information as on January 31, 2008:

Working capital $ 1,968
Cash and cash equivalents $ 600
Total assets $ 44,324
Total stockholders' equity $ 17,714
eBook Links (3)

1.value:

Consider that you are the credit manager of a medium-size supplier of building supplies. Home Depot needs to create credit purchases from your company, with payment due in 60 days.

a.1
Determine the current ratio for the fiscal years ending January 31, 2010, and February 1, 2009.

Current ratio
31-Jan-2010 to
01-Feb-2009 to

a.2
Determine the quick ratio for the fiscal years ending January 31, 2010, and February 1, 2009.

Quick ratio
31-Jan-2010 to
01-Feb-2009 to

a.3
Determine the amount of working capital for the fiscal years ending January 31, 2010, and February 1, 2009.

Working capital
31-Jan-2010 $
01-Feb-2009 $

a.4
Determine the percentage change relative to the previous year in working capital from the prior year for the fiscal years ending January 31, 2010, and February 1, 2009.

Percentage change
in working capital
31-Jan-2010 %
01-Feb-2009 %

a.5
Evaluate the percentage change relative to the preceding year in cash and cash equivalents from the previous year for the fiscal years ending January 31, 2010, and February 1, 2009.

Percentage change in cash equivalents and cash
31-Jan-2010 %
01-Feb-2009 %

2.value:

a.1
Determine the percentage change relative to the preceding year in net sales for the current years ending January 31, 2010, and February 1, 2009.

Percentage change
in net sales
31-Jan-2010 %
01-Feb-2009 %

a.2
Evaluate the percentage change relative to the preceding year in net earnings for the fiscal years ending January 31, 2010, and February 1, 2009.

Percentage change in
net earnings
31-Jan-2010 %
01-Feb-2009 %

a.3
Evaluate the Gross profit rate for the fiscal years ending January 31, 2010, and February 1, 2009.

Gross profit rate
31-Jan-2010 %
01-Feb-2009 %

a.4
Determine the net income as a percentage of sales for the fiscal years ending January 31, 2010, and February 1, 2009.

Net income as a percentage of sales
31-Jan-2010 %
01-Feb-2009 %

a.5
Calculate the return on average total assets for the fiscal years ending January 31, 2010, and February 1, 2009.

Return on average total assets
31-Jan-2010 %
01-Feb-2009 %

a.6
Calculate the return on average total equity for the fiscal years ending January 31, 2010, and February 1, 2009.

Return on average total equity
31-Jan-2010 %
01-Feb-2009 %