An excerpt from the Consolidated Statements of Earnings for The Home Depot, Inc., is prese...

An excerpt from the Consolidated Statements of Earnings for The Home Depot, Inc., is presented below. Review the financial data and answer the following analysis questions:

Analyze:

1. Based on the financial statement presented above, what is The Home Depot, Inc.’s fiscal year period?

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2. The Home Depot, Inc.’s statement reports one figure for net sales. Name one account whose balance may have been deducted from the Sales account balance to determine a net sales amount.

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3. The data presented demonstrate a steady decrease in net sales over the three-year period. By what percentage have net sales of 2010 decreased from sales of 2008?

Analyze Online: Find the most recent consolidated statements of income on The Home Depot, Inc., Web site (www.homedepot.com). Click on Investor Relations then Financial Reports then Annual Reports, then select the link for the most recent annual report.

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4. What dollar amount is reported for net sales for the most recent year?

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5. What is the trend in net sales over the last three years?

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6. What are some possible reasons for this trend?