Question

Home Depot Inc. Common-Size Balance Sheets Dollar amounts in Millions Jan. 28, 2018 Jan. 29, 2017 Current assets: Cash and cash equivalents Receivables, net Merchandise inventories Other current assets Total current assets $ 2,538 2,02 1,952 12,748 638 18,933 608 Net property and equipment Goodwill Other assets Total assets 22,075 2,275 1246 21,914 2,093 1,23 42,966 44,529 Current Liabilities: Short-term debt Accounts payable Accrued salaries and related expenses Sales taxes payable Deferred revenue Income taxes payable Current installments of long-term debt Other accrued expenses Total current liabilities 1,559 7,244 1,640 520 1,805 54 1,202 2.170 16,194 710 7,000 1,484 508 1,669 25 542 2,195 14,133 Long-term debt, excluding current installments Deferred income taxes Other long-term liabilities Total liabilities 24.267 440 2.174 22,349 296 1,855 38,633 43,075 Common stock, par value $0.05; authorized: 10,000 shares; issued: 1,780 shares at January 28, 2018 and 1,776 shares at January 29, 2017 Paid-in capital Retained earnings Accumulated other comprehensive loss 89 10,192 39,935 566 48.196 1,454 9,787 35,519 867 40,194 Treasury stock, at cost, 622 shares at January 28, 2018 and 573 shares at January 29, 2017 Total stockholders' equity Total liabilities and stockholders' equity S 44,529 #1 Answer the following questions below for the most recent year. a. What are the company's 2 largest assets? b. What are the company's 2 largest liabilities? c. What percentage of total assets is financed by owners? d. What proportion of total assets is financed by creditors?

Answer 1

Solution 1a:

Company's 2 largest assets:

Net Property, Plant and Equipment = $22,075 million

Merchandise Inventory = $12,748 Milllion

Solution 1b:

Company's 2 largest liabilities:

Long term debt excluding current installments = $24,267 Million

Accounts Payable = $7,244 Million

Solution 1c:

Percentage of total assets financed by owners = $1,454 / $44,529 = 3.27%

Solution 1d:

Proportion of total assets financed by creditors = $43,075 / $44,529 = 96.73%