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Comprehensive Problem 4
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 |
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Fiscal Year Ended(1) | |||||||||||
amounts in millions, except per share data | January 31,2016 |
February 1, 2015 |
February 2, 2014 |
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NET SALES | $ | 66,192 | $ | 71,299 | $ | 77,359 | |||||
Cost of Sales | 43,752 | 47,292 | 51,341 | ||||||||
GROSS PROFIT | 22,440 | 24,007 | 26,018 | ||||||||
Operating Expenses: | |||||||||||
Selling, General and Administrative | 15,886 | 17,828 | 17,051 | ||||||||
Depreciation and Amortization | 1,703 | 1,770 | 1,692 | ||||||||
Total Operating Expenses | 17,589 | 19,598 | 18,743 | ||||||||
OPERATING INCOME | 4,851 | 4,409 | 7,275 | ||||||||
Interest and Other (Income) Expense: | |||||||||||
Interest and Investment Income | (27 | ) | (27 | ) | (87 | ) | |||||
Interest Expense | 660 | 616 | 686 | ||||||||
Other | (152 | ) | 152 | — | |||||||
Interest and Other, net | 785 | 741 | 599 | ||||||||
EARNINGS BEFORE PROVISION FOR INCOME TAXES | 4,066 | 3,668 | 6,676 | ||||||||
Provision for Income Taxes | 1,361 | 1,259 | 2,409 | ||||||||
NET EARNINGS | $ | 2,705 | $ | 2,409 | $ | 4,267 | |||||
Weighted Average Common Shares | 1,579 | 1,642 | 1,728 | ||||||||
BASIC EARNINGS PER SHARE | $ | 1.71 | $ | 1.65 | $ | 2.47 | |||||
Diluted Weighted Average Common Shares | 1,591 | 1,650 | 1,589 | ||||||||
DILUTED EARNINGS PER SHARE | $ | 1.70 | $ | 1.46 | $ | 2.69 | |||||
(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 SHEETS |
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amounts in millions, except share and per share data | January 31, 2016 |
February 1, 2015 |
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ASSETS | |||||||
Current Assets: | |||||||
Cash and Cash Equivalents | $ | 1,276 | $ | 1,238 | |||
Receivables, net | 980 | 975 | |||||
Merchandise Inventories | 10,253 | 10,743 | |||||
Other Current Assets | 1,334 | 1,198 | |||||
Total Current Assets | 13,843 | 14,154 | |||||
Property and Equipment, at cost | 37,401 | 36,565 | |||||
Less Accumulated Depreciation and Amortization | 11,785 | 10,168 | |||||
Net Property and Equipment | 25,616 | 26,397 | |||||
Goodwill | 1,177 | 1,134 | |||||
Other Assets | 227 | 406 | |||||
Total Assets | $ | 40,863 | $ | 42,091 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current Liabilities: | |||||||
Short-Term Debt | $ | 370 | $ | 560 | |||
Accounts Payable | 5,443 | 4,807 | |||||
Accrued Salaries and Related Expenses | 1,250 | 1,127 | |||||
Sales Taxes Payable | 343 | 330 | |||||
Deferred Revenue | 1,152 | 1,149 | |||||
Income Taxes Payable | 104 | 286 | |||||
Current Installments of Long-Term Debt | 1,013 | 1,759 | |||||
Other Accrued Expenses | 1,575 | 1,643 | |||||
Total Current Liabilities | 11,250 | 11,661 | |||||
Long-Term Debt, excluding current installments | 8,661 | 9,650 | |||||
Other Long-Term Liabilities | 2,131 | 2,196 | |||||
Deferred Income Taxes | 1,152 | 1,149 | |||||
Total Liabilities | 23,194 | 24,656 | |||||
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 |
82 | 81 | |||||
Paid-In Capital | 6,294 | 6,031 | |||||
Retained Earnings | 11,529 | 11,784 | |||||
Accumulated Other Comprehensive Income | 355 | 87 | |||||
Treasury Stock, at cost, 270 million shares at January 31, 2016 and 196 million shares at February 1, 2015 |
(591 | ) | (374 | ) | |||
Total Stockholders’ Equity | 17,669 | 17,435 | |||||
Total Liabilities and Stockholders’ Equity | $ | 40,863 | $ | 42,091 | |||
Selected information as on February 2, 2014:
Working capital | $ | 2,668 | ||
Cash balance | $ | 1,280 | ||
Total assets | $ | 44,404 | ||
Stockholders' equity | $ | 17,684 | ||
rev: 04_07_2020_QC_CS-207273, CS-207274
Comprehensive Problem 4 Part 3
a-1. Compute the percentage change relative to the previous year in net sales for the fiscal years ending February 1, 2015, and January 31, 2016.
a-2. Compute the percentage change in net earnings for the fiscal years ending February 1, 2015, and January 31, 2016.
a-3. Compute the gross profit rate for the fiscal years ending February 1, 2015, and January 31, 2016.
a-4. Compute the net income as a percentage of sales for the fiscal years ending February 1, 2015, and January 31, 2016.
a-5. Compute the return on average total assets for the fiscal years ending February 1, 2015, and January 31, 2016.
a-6. Compute the return on average total equity for the fiscal years ending February 1, 2015, and January 31, 2016.
change in sales | % change in sales = change in sales/sales value in 2015 | ||||
A-1 | sales | 71299 | 66192 | -5107 | -7.16% |
2015 | 2016 | change in net earning | % change in net earning= change in net earning/net earning value in 2015 | ||
A-2 | net earning | 1259 | 1361 | 102 | 8.10% |
2015 | 2016 | ||||
A-3 | Gross profit rate = gross profit/sales | 24007/71299 | 33.67% | 22440/66192 | 33.90% |
2015 | 2016 | ||||
A-4 | Net income as % of sales = net income/sales | 1259/71299 | 1.77% | 1361/66192 | 2.06% |
2015 | 2016 | ||||
A-5 | return on total average assets = earning/average of total assets | 1259/43247.5 | 2.91% | 1361/41477 | 3.28% |
average assets | (44404+42091)/2 | 43247.5 | (42091+40863)/2 | 41477 | |
2015 | 2016 | ||||
A-6 | return on average total equity = net income/average of total equity | 1259/17559.5 | 7.17% | 1361/17552 | 7.75% |
average of total equity | (17684+17435)/2 | 17559.5 | (17435+17669)/2 | 17552 |
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