Reference no: EM132493448
The following 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(1)amounts in millions, except per share data
January 31,2016 February 1, 2015 February 2, 2014
NET SALES $66,193 $71,293 $77,363
Cost of Sales 43,756 47,297 51,348
GROSS PROFIT 22,437 23,996 26,015
Operating Expenses:
Selling, General and Administrative 15,900 17,843 17,044
Depreciation and Amortization 1,692 1,770 1,695
Total Operating Expenses 17,592 19,613 18,739
OPERATING INCOME 4,845 4,383 7,276
Interest and Other (Income) Expense:
Interest and Investment Income (20) (20) (83)
Interest Expense 663 612 689
Other (159) 159 -
Interest and Other, net 802 751 606
EARNINGS BEFORE PROVISION FOR INCOME TAXES 4,043 3,632 6,670
Provision for Income Taxes 1,353 1,261 2,406
NET EARNINGS $2,690 $2,371 $4,264
Weighted Average Common Shares 1,539 1,602 1,688
BASIC EARNINGS PER SHARE $1.75 $1.68 $2.53
Diluted Weighted Average Common Shares 1,551 1,610 1,549
DILUTED EARNINGS PER SHARE $1.73 $1.47 $2.75
(1) Fiscal years ended January 31, 2016, February 1, 2015 and February 2, 2014 include 52 weeks.
THE HOME DEPOT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETSamounts in millions, except share and per share data
January 31, 2016 February 1, 2015
ASSETS Current Assets:
Cash and Cash Equivalents $1,279 $1,226
Receivables, net 981 988
Merchandise Inventories 10,258 10,738
Other Current Assets 1,321 1,195
Total Current Assets 13,839 14,147
Property and Equipment, at cost 37,433 36,619
Less Accumulated Depreciation and Amortization 11,700 10,228
Net Property and Equipment 25,733 26,391
Goodwill 1,175 1,150
Other Assets 229 404
Total Assets $40,976 $42,092
LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities:
Short-Term Debt $390 $570
Accounts Payable 5,423 4,809
Accrued Salaries and Related Expenses 1,259 1,116
Sales Taxes Payable 361 317
Deferred Revenue 1,155 1,156
Income Taxes Payable 103 277
Current Installments of Long-Term Debt 1,013 1,760
Other Accrued Expenses 1,588 1,640
Total Current Liabilities 11,292 11,645
Long-Term Debt, excluding current installments 8,648 9,652
Other Long-Term Liabilities 2,125 2,179
Deferred Income Taxes 1,155 1,156
Total Liabilities 23,220 24,632
Point 1: STOCKHOLDERS' EQUITY Common Stock, par value $0.05; authorized: 10 billion shares; issued: 1.754 billion shares at January 31, 2016 and 1.733 billion shares at February 1, 2015; outstanding: 1.484 billion shares at January 31, 2016 and 1.537 billion shares at February 1, 2015 77 76 Paid-In Capital 6,298 6,037 Retained Earnings 11,606 11,818 Accumulated Other Comprehensive Income 360 80 Treasury Stock, at cost, 270 million shares at January 31, 2016 and 196 million shares at February 1, 2015 (585) (391)Total Stockholders' Equity 17,756 17,460 Total Liabilities and Stockholders' Equity$40,976 $42,092
Selected information as on February 2, 2014:
Working capital$2,668
Cash balance$1,280
Total assets$44,329
Stockholders' equity$17,679
Assume that you are the credit manager of a medium-size supplier of building materials and related products. Home Depot wants to make credit purchases from your company, with payment due in 60 days.
Instructions:
Question a-1. Compute the current ratio for the fiscal years ending January 31, 2016, and February 1, 2015.
Question a-2. Compute the quick ratio for the fiscal years ending January 31, 2016, and February 1, 2015.
Question a-3. Compute the amount of working capital for the fiscal years ending January 31, 2016, and February 1, 2015.
Question a-4. Compute the percentage change in working capital from the prior year for the fiscal years ending January 31, 2016, and February 1, 2015.
Question a-5. Compute the percentage change in cash and cash equivalents from the prior year for the fiscal years ending January 31, 2016, and February 1, 2015.