Question

For this post, I would like you to go and pull a 10K from a publically traded company (please pull a PDF version and attach it to your reply here in Canvas. If you aren't able to attach it, please include the URL in your response, so I can quickly get to the 10K you are using). Please answer the following questions. 1. What was the revenue in the current year and the previous year? By what percent did it increase/decrease? 2. Please calculate the gross margin percentage. 3. Please find the footnote for cash and cash equivalents. What does the company consider "cash equivalents" 4. Please find the inventory footnote. What method do they use for inventory? 5. Please find the accounts receivable footnote. What details do they provide around "bad debt expense" and "allowance for uncollectible accounts"?

just attach the url please!

Answer 1

I have selected company Home Depot
URL : https://ir.homedepot.com/~/media/Files/H/HomeDepot-IR/documents/current-forms/Fiscal%202018%2010-K_withlinks.pdf

1. Revenue in current year i.e 2018 is $108203 millions and in previous year i.e. 2017 is $100904 millions.
The revenue has increased from 2017 to 2018 by $7299 millions (108203-100904).
Percentage increase = 7299/100904 x 100 = 7.23%

2. Gross margin percentage = Gross Margin / Sales x 100
Current Year 2018 = $37160 / $108203 x 100 = 34.34%

Previous Year 2047 = $34356 / $100904 x 100 = 34.05%

3. We consider all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Our cash equivalents are carried at fair market value and consist primarily of money market funds.

4. The majority of our merchandise inventories are stated at the lower of cost (first-in, first-out) or market, as determined by the retail inventory method. As the inventory retail value is adjusted regularly to reflect market conditions, the inventory valued using the retail method approximates the lower of cost or market. Certain subsidiaries, including retail operations in Canada and Mexico, and distribution centers, record merchandise inventories at the lower of cost or net realizable value, as determined by a cost method.

5. Nothing provided for Bad Debt Expense or allowance for uncollectible accounts