Changes in the amount of retained earnings fund

Assignment Help Financial Accounting

Reference no: EM13173092

Instructions: Answer each of the following questions and briefly explain where in the statements, notes, or other sections of the annual report you located the information used in your answer.

a. How many years are covered in each of the primary comparative financial statements? Were all of these statements audited? Name the auditors. What were the auditors' conclusions concerning these statements?

b. Home Depot combines its statement of retained earnings with another financial statement.

Where are details about changes in the amount of retained earnings fund?c. Over the three years presented, have the company's annual net cash flows been positive or negative from

1) operating activities,

2) investing activities, and

3) financing activities?

Has the company's cash balance increased or decreased during each of these three years?Part IIHome Depot wants to make credit purchases from your company, with payment due in 60 days assuming you are a credit manager of a medium sized supplier.a. read the first note to the financial statements, "Summary of Significant Accounting Policies". Compute the following for the fiscal years ending feb. 3, 2008, and jan. 28, 2007 (round percentages to the nearest tenth of 1 percent, and other computations to one decimal place):

1. Current Ratio

2. Quick Ratio

3. Amount of Working Capital

4. Percentage change in working capital from the prior year

5. Percentage change in cash and cash equivalents from the prior year.

B. Based upon your analysis in part a, does teh company's liquidity appear to have increased or decreased during the most recent fiscal year? Explain.C. Other than the ability of Home Depot to pay for it's purchases, do you see any major considerations that should enter into your company's decision? Explain.D. Your company assigns each customer one of the four credit ratings listed below. Assign a credit rating to Home Depot and write a memorandum explaining your decision.Possible Credit Ratings:A- OutstandingB- GoodC- MarginalD- UnacceptablePart IIIa. compute the following for the fiscal years ending Feb. 3, 2008 and jan. 28, 2007 (round percentages to the nearest tenth):

1. percentage change in net sales (relative to the prior year)

2. Percentage change in net earnings

3. Gross profit rate.

4. Net income as a percentage of sales.

5. Return on average total assets.

6. Return on average total equity.

Reference no: EM13173092

Questions Cloud

What is the significance of high pressure used in hplc : What is the significance of high pressure used in HPLC?

Healthy self identity development of self and personality : "Healthy Self Identity (Psychology) development of self and personality; during this stage of development, the adolescent is asking "Who am I?, the adolescent's ability to develop a healthy self identity is essential for navigating through life, not ..

Compound econdary alcohol treated : how do you know weather it undergoes the E1 mechanism or the E2 mechanism?

How many atoms of gold are presents : Gold sells for $1120/oz. One ounce is equal to 28.35g. The molar mass of gold is 196.97g/mol. 1 moldovian franc contains 0.567g of gold. If 1 franc = $1.42, how many atoms of gold are presents in 0.010 moldovian francs?

Changes in the amount of retained earnings fund : Where are details about changes in the amount of retained earnings fund and Over the three years presented, have the company's annual net cash flows been positive or negative from operating activities,

Identify the oxidizing agent and the reducing agent : Identify the oxidizing agent and the reducing agent for rm Ba(s) + Cl_2(g) to BaCl_2(s)?

Explain elasticity of demand : What does the price elasticity of demand measure? what is the absolute value of the short-run elasticity of demand for bread has been estimated to be 0.15. Its long-run elasticity of demand.

Which of the following is a property of acid solutions : Which of the following is a property of acid solutions?

State working with the percent-by-mass : When square brackets are placed around the formula for a substance, such as [NaOH], it indicates that we are working with the percent-by-mass

User Account

All Pages