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 F

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

January 31,

2010 February 1,

2009 February 3,

2008

NET SALES $ 66,184 $ 71,301 $ 77,366

Cost of Sales 43,757 47,279 51,346

GROSS PROFIT 22,427 24,022 26,020

Operating Expenses:

Selling, General and Administrative 15,896 17,831 17,049

Depreciation and Amortization 1,707 1,772 1,691

Total Operating Expenses 17,603 19,603 18,740

OPERATING INCOME 4,824 4,419 7,280

Interest and Other (Income) Expense:

Interest and Investment Income (21) (21) (92)

Interest Expense 672 611 690

Other 144 144 —

Interest and Other, net 795 734 598

EARNINGS FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES 4,029 3,685 6,682

Provision for Income Taxes 1,356 1,269 2,398

EARNINGS FROM CONTINUING OPERATIONS 2,673 2,416 4,284

EARNINGS (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX 46 (51) 194

NET EARNINGS $ 2,719 $ 2,365 $ 4,478

THE HOME DEPOT, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

January 31,

2010 February 1,

2009

ASSETS

Current Assets:

Cash and Cash Equivalents $ 1,439 $ 520

Short-Term Investments 13 13

Receivables, net 970 991

Merchandise Inventories 10,213 10,773

Other Current Assets 1,330 1,194

Total Current Assets 13,965 13,491

Property and Equipment, at cost:

Land 8,459 8,314

Buildings 17,481 17,056

Furniture, Fixtures and Equipment 9,098 8,742

Leasehold Improvements 1,401 1,371

Construction in Progress 539 643

Capital Leases 513 491

37,491 36,617

Less Accumulated Depreciation and Amortization 11,720 10,148

Net Property and Equipment 25,771 26,469

Notes Receivable 38 41

Goodwill 1,176 1,137

Other Assets 239 410

Total Assets $ 41,189 $ 41,548

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:

Accounts Payable $ 4,853 $ 4,809

Accrued Salaries and Related Expenses 1,244 1,122

Sales Taxes Payable 354 328

Deferred Revenue 1,152 1,146

Income Taxes Payable 103 278

Current Installments of Long-Term Debt 1,011 1,764

Other Accrued Expenses 1,584 1,630

Total Current Liabilities 10,301 11,077

Long-Term Debt, excluding current installments 8,654 9,657

Other Long-Term Liabilities 2,138 2,197

Deferred Income Taxes 316 358

Total Liabilities 21,409 23,289

STOCKHOLDERS’ EQUITY

Common Stock, par value $0.05; authorized: 10billion shares;

issued: 1.716 billionshares 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

84 83

Paid-In Capital 6,289 6,044

Retained Earnings 13,642 12,592

Accumulated Other Comprehensive Income (Loss) 352 (86)

Treasury Stock, at cost, 18 million shares at January 31, 2010 and

11 million shares at February 1, 2009

(587) (374)

Total Stockholders’ Equity 19,780 18,259

Total Liabilities and Stockholders’ Equity $ 41,189 $ 41,548

Selected information as on January 31, 2008:

Working capital $ 1,957

Cash and cash equivalents $ 597

Total assets $ 44,389

Total stockholders’ equity $ 17,699

rev: 11_16_2012

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1.value:

25.00 points

Comprehensive Problem 4 Part 2

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

a.1

Compute the current ratio for the fiscal years ending January 31, 2010, and February 1, 2009. (Round your answers to 2 decimal places.)

Current ratio

31-Jan-2010 to

01-Feb-2009 to

a.2

Compute the quick ratio for the fiscal years ending January 31, 2010, and February 1, 2009. (Round your answers to 2 decimal places.)

Quick ratio

31-Jan-2010 to

01-Feb-2009 to

a.3

Compute the amount of working capital for the fiscal years ending January 31, 2010, and February 1, 2009. (Omit the “$” sign in your response.)

Working capital

31-Jan-2010 $

01-Feb-2009 $

a.4

Compute 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. (Round your answers to 2 decimal places. Omit the “%” sign in your response.)

Percentage change

in working capital

31-Jan-2010 %

01-Feb-2009 %

a.5

Compute the percentage change relative to the previous year in cash and cash equivalents from the prior year for the fiscal years ending January 31, 2010, and February 1, 2009. (Round your answers to 2 decimal places. Negative amounts should be indicated by a minus sign. Omit the “%” sign in your response.)

Percentage change in cash and cash equivalents

31-Jan-2010 %

01-Feb-2009 %

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2.value:

25.00 points

Comprehensive Problem 4 Part 3

a.1

Compute the percentage change relative to the previous year in net sales for the fiscal years ending January 31, 2010, and February 1, 2009. (Round your answers to 2 decimal places. Negative amounts should be indicated by a minus sign. Omit the “%” sign in your response.)

Percentage change

in net sales

31-Jan-2010 %

01-Feb-2009 %

a.2

Compute the percentage change relative to the previous year in net earnings for the fiscal years ending January 31, 2010, and February 1, 2009. (Round your answers to 2 decimal places. Negative amounts should be indicated by a minus sign. Omit the “%” sign in your response.)

Percentage change

in net earnings

31-Jan-2010 %

01-Feb-2009 %

a.3

Compute the Gross profit rate for the fiscal years ending January 31, 2010, and February 1, 2009. (Round your answers to 2 decimal places. Omit the “%” sign in your response.)

Gross profit rate

31-Jan-2010 %

01-Feb-2009 %

a.4

Compute the net income as a percentage of sales for the fiscal years ending January 31, 2010, and February 1, 2009. (Round your answers to 2 decimal places. Omit the “%” sign in your response.)

Net income as a percentage of sales

31-Jan-2010 %

01-Feb-2009 %

a.5

Compute the return on average total assets for the fiscal years ending January 31, 2010, and February 1, 2009. (Round your intermediate calculations to the nearest dollar amount and final answers to 2 decimal places. Omit the “%” sign in your response.)

Return on average total

assets

31-Jan-2010 %

01-Feb-2009 %

a.6

Compute the return on average total equity for the fiscal years ending January 31, 2010, and February 1, 2009. (Round your intermediate calculations to the nearest dollar amount and final answers to 2 decimal places. Omit the “%” sign in your response.)

Return on average total

equity

31-Jan-2010 %

01-Feb-2009 %

rev: 11_16_2012

check my workreferences

3.value:

25.00 points

Comprehensive Problem 4 Part 2

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

a.1

Compute the current ratio for the fiscal years ending January 31, 2010, and February 1, 2009. (Round your answers to 2 decimal places.)

Current ratio

31-Jan-2010 to

01-Feb-2009 to

a.2

Compute the quick ratio for the fiscal years ending January 31, 2010, and February 1, 2009. (Round your answers to 2 decimal places.)

Quick ratio

31-Jan-2010 to

01-Feb-2009 to

a.3

Compute the amount of working capital for the fiscal years ending January 31, 2010, and February 1, 2009. (Omit the “$” sign in your response.)

Working capital

31-Jan-2010 $

01-Feb-2009 $

a.4

Compute 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. (Round your answers to 2 decimal places. Omit the “%” sign in your response.)

Percentage change

in working capital

31-Jan-2010 %

01-Feb-2009 %

a.5

Compute the percentage change relative to the previous year in cash and cash equivalents from the prior year for the fiscal years ending January 31, 2010, and February 1, 2009. (Round your answers to 2 decimal places. Negative amounts should be indicated by a minus sign. Omit the “%” sign in your response.)

Percentage change in cash and cash equivalents

31-Jan-2010 %

01-Feb-2009 %

check my workreferences

4.value:

25.00 points

Comprehensive Problem 4 Part 3

a.1

Compute the percentage change relative to the previous year in net sales for the fiscal years ending January 31, 2010, and February 1, 2009. (Round your answers to 2 decimal places. Negative amounts should be indicated by a minus sign. Omit the “%” sign in your response.)

Percentage change

in net sales

31-Jan-2010 %

01-Feb-2009 %

a.2

Compute the percentage change relative to the previous year in net earnings for the fiscal years ending January 31, 2010, and February 1, 2009. (Round your answers to 2 decimal places. Negative amounts should be indicated by a minus sign. Omit the “%” sign in your response.)

Percentage change

in net earnings

31-Jan-2010 %

01-Feb-2009 %

a.3

Compute the Gross profit rate for the fiscal years ending January 31, 2010, and February 1, 2009. (Round your answers to 2 decimal places. Omit the “%” sign in your response.)

Gross profit rate

31-Jan-2010 %

01-Feb-2009 %

a.4

Compute the net income as a percentage of sales for the fiscal years ending January 31, 2010, and February 1, 2009. (Round your answers to 2 decimal places. Omit the “%” sign in your response.)

Net income as a percentage of sales

31-Jan-2010 %

01-Feb-2009 %

a.5

Compute the return on average total assets for the fiscal years ending January 31, 2010, and February 1, 2009. (Round your intermediate calculations to the nearest dollar amount and final answers to 2 decimal places. Omit the “%” sign in your response.)

Return on average total

assets

31-Jan-2010 %

01-Feb-2009 %

a.6

Compute the return on average total equity for the fiscal years ending January 31, 2010, and February 1, 2009. (Round your intermediate calculations to the nearest dollar amount and final answers to 2 decimal places. Omit the “%” sign in your response.)

Return on average total

equity

31-Jan-2010 %

01-Feb-2009 %

rev: 11_16_2012

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