Question

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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	$	66,181			$	71,294			$	77,359
Cost of Sales		43,756				47,283				51,349
GROSS PROFIT		22,425				24,011				26,010
Operating Expenses:
Selling, General and Administrative		15,897				17,832				17,052
Depreciation and Amortization		1,702				1,766				1,687
Total Operating Expenses		17,599				19,598				18,739
OPERATING INCOME		4,826				4,413				7,271
Interest and Other (Income) Expense:
Interest and Investment Income		(27	)			(27	)			(79	)
Interest Expense		666				617				690
Other		(150	)			150				—
Interest and Other, net		789				740				611
EARNINGS BEFORE PROVISION FOR INCOME TAXES		4,037				3,673				6,660
Provision for Income Taxes		1,343				1,277				2,399
NET EARNINGS	$	2,694			$	2,396			$	4,261
Weighted Average Common Shares		1,599				1,662				1,748
BASIC EARNINGS PER SHARE	$	1.68			$	1.62			$	2.44
Diluted Weighted Average Common Shares		1,611				1,670				1,609
DILUTED EARNINGS PER SHARE	$	1.67			$	1.43			$	2.65

⁽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
amounts in millions, except share and per share data	January 31, 2016				February 1, 2015
ASSETS
Current Assets:
Cash and Cash Equivalents	$	1,276			$	1,222
Receivables, net		965				988
Merchandise Inventories		10,278				10,688
Other Current Assets		1,321				1,209
Total Current Assets		13,840				14,107
Property and Equipment, at cost		37,439				36,607
Less Accumulated Depreciation and Amortization		11,725				10,183
Net Property and Equipment		25,714				26,424
Goodwill		1,177				1,153
Other Assets		232				408
Total Assets	$	40,963			$	42,092
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Short-Term Debt	$	370			$	570
Accounts Payable		5,413				4,803
Accrued Salaries and Related Expenses		1,244				1,120
Sales Taxes Payable		348				327
Deferred Revenue		1,143				1,160
Income Taxes Payable		105				271
Current Installments of Long-Term Debt		1,010				1,761
Other Accrued Expenses		1,573				1,633
Total Current Liabilities		11,206				11,645
Long-Term Debt, excluding current installments		8,654				9,655
Other Long-Term Liabilities		2,125				2,191
Deferred Income Taxes		1,143				1,160
Total Liabilities		23,128				24,651
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		6,290				6,037
Retained Earnings		11,694				11,794
Accumulated Other Comprehensive Income		361				81
Treasury Stock, at cost, 270 million shares at January 31, 2016 and 196 million shares at February 1, 2015		(587	)			(385	)
Total Stockholders’ Equity		17,835				17,441
Total Liabilities and Stockholders’ Equity	$	40,963			$	42,092

Selected information as on February 2, 2014:

Working capital	$	2,658
Cash balance	$	1,290
Total assets	$	44,344
Stockholders' equity	$	17,739

rev: 04_07_2020_QC_CS-207273, CS-207274

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:

a-1. Compute the current ratio for the fiscal years ending January 31, 2016, and February 1, 2015.

a-2. Compute the quick ratio for the fiscal years ending January 31, 2016, and February 1, 2015.

a-3. Compute the amount of working capital for the fiscal years ending January 31, 2016, and February 1, 2015.

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.

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.

Compute the current ratio for the fiscal years ending January 31, 2016, and February 1, 2015. (Round your answers to 2 decimal places.) Current Ratio to 1 January 31, 2016 February 1, 2015 to 1 < Req A1 Req A2 >

Answer 1

Dear student, we cannot able to post solution more than four sub-parts of the question as per our policy.

All dollar amount in million.
Answer 1	January 31, 2016	February 1, 2015
Total Current assets	$13,840	$14,107
Divided by: Total Current liabilities	$11,206	$11,645
Current ratio	1.24	1.21
Answer 2	January 31, 2016	February 1, 2015
Cash	$1,276	$1,222
Account receivable	$965	$988
Total Quick assets	$2,241	$2,210
Divided by: Total Current liabilities	$11,206	$11,645
Quick ratio	0.20	0.19
Answer 3	January 31, 2016	February 1, 2015
Total Current assets	$13,840	$14,107
Divided by: Total Current liabilities	$11,206	$11,645
Working capital (in million)	$2,634	$2,462
Answer 4	January 31, 2016	February 1, 2015
Working capital	$2,634	$2,462
Less: Previous year's working capital	$2,462	$2,658
Increase (decrease) in working capital	$172	-$196
Divided by: Previous year's working capital	$2,462	$2,658
Percentage change in working capital	7.0%	-7.4%