Question

APPENDIX A Excerpts from the Fiscal 2013 Annual Report of TheHome Depot, Inc. A5
THE HOME DEPOT, INC. AND SUBSIDIARIES Consolidated BalanceSheets
amounts in millions, except share and per share data
February 2, 2014
February 3, 2013
ASSETS Current Assets: Cash and Cash Equivalents $ 1,929 $ 2,494Receivables, net 1,398 1,395 Merchandise Inventories 11,057 10,710Other Current Assets 895 773 Total Current Assets15,279 15,372 Property and Equipment, at cost 39,064 38,491 LessAccumulated Depreciation and Amortization 15,716 14,422 NetProperty and Equipment 23,348 24,069 Goodwill 1,289 1,170 OtherAssets 602 473 Total Assets $40,518$41,084 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities:Accounts Payable $ 5,797 $ 5,376 Accrued Salaries and RelatedExpenses 1,428 1,414 Sales Taxes Payable 396 472 Deferred Revenue1,337 1,270 Income Taxes Payable 12 22 Current Installments ofLong-Term Debt 33 1,321 Other Accrued Expenses 1,746 1,587 Total Current Liabilities 10,74911,462 Long-Term Debt, excluding current installments 14,691 9,475Other Long-Term Liabilities 2,042 2,051 Deferred IncomeTaxes 514 319 Total Liabilities27,996 23,307 STOCKHOLDERS’ EQUITY Common Stock, par value $0.05;authorized: 10 billion shares; issued: 1.761 billion sharesat February 2, 2014 and 1.754 billion shares atFebruary 3, 2013; outstanding: 1.380 billion shares at February 2, 2014 and 1.484 billion shares at February 3, 2013 88 88Paid-In Capital 8,402 7,948 Retained Earnings 23,180 20,038Accumulated Other Comprehensive Income 46 397 Treasury Stock, atcost, 381 million shares at February 2, 2014 and 270 million sharesat February 3, 2013 (19,194) (10,694) Total Stockholders’ Equity12,522 17,777 Total Liabilities and Stockholders’Equity $40,518 $41,084
See accompanying Notes to Consolidated Financial Statements.
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A6 APPENDIX A Excerpts from the Fiscal 2013 Annual Report of TheHome Depot, Inc.
THE HOME DEPOT, INC. AND SUBSIDIARIES Consolidated Statements ofEarnings
Fiscal Year Ended(1)
amounts in millions, except per share data
February 2, 2014
February 3, 2013
January 29, 2012 NET SALES $78,812 $74,754 $70,395 Cost of Sales51,422 48,912 46,133 GROSS PROFIT 27,390 25,842 24,262 OperatingExpenses: Selling, General and Administrative 16,597 16,508 16,028Depreciation and Amortization 1,627 1,568 1,573 TotalOperating Expenses 18,224 18,076 17,601 OPERATING INCOME 9,1667,766 6,661 Interest and Other (Income) Expense: Interest andInvestment Income (12) (20) (13) Interest Expense 711 632 606Other — (67) — Interest andOther, net 699 545 593 EARNINGS BEFOREPROVISION FOR INCOME TAXES 8,467 7,221 6,068 Provision for IncomeTaxes 3,082 2,686 2,185 NET EARNINGS $ 5,385 $ 4,535 $ 3,883Weighted Average Common Shares 1,425 1,499 1,562 BASIC EARNINGS PERSHARE $ 3.78 $ 3.03$ 2.49 Diluted Weighted Average Common Shares1,434 1,511 1,570 DILUTED EARNINGS PER SHARE $ 3.76 $ 3.00 $ 2.47
THE HOME DEPOT, INC. AND SUBSIDIARIES Consolidated Statements ofComprehensive Income
Fiscal Year Ended(1)
amounts in millions
February 2, 2014
February 3, 2013
January 29, 2012 Net Earnings $5,385 $4,535 $3,883 OtherComprehensive (Loss) Income: Foreign Currency TranslationAdjustments (329) 100 (143) Cash Flow Hedges, net of tax (12) 55Other (10) (1) (14) Total Other Comprehensive(Loss) Income (351) 104 (152) COMPREHENSIVE INCOME $5,034 $4,639$3,731
(1) Fiscal years ended February 2, 2014 and January 29, 2012include 52 weeks. Fiscal year ended February 3, 2013 includes 53weeks. See accompanying Notes to Consolidated FinancialStatements.
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APPENDIX A Excerpts from the Fiscal 2013 Annual Report of The HomeDepot, Inc. A7
THE HOME DEPOT, INC. AND SUBSIDIARIES Consolidated Statements ofStockholders’ Equity
amounts in millions, except per share data
Paid-In Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Stockholders’ Equity
Common Stock Treasury Stock Shares Amount Shares Amount BALANCE,JANUARY 30, 2011 1,722 $86 $6,556 $14,995 $445 (99) $ (3,193)$18,889 Net Earnings — — — 3,883 — — — 3,883 Shares Issued UnderEmployee Stock Plans 11 1 196 — — — — 197 Tax Effect of Stock-BasedCompensation — — (2) — — — — (2) Foreign Currency TranslationAdjustments — — — — (143) — — (143) Cash Flow Hedges, net of tax —— — — 5 — — 5 Stock Options, Awards and Amortization of RestrictedStock — — 215 — — — — 215 Repurchases of Common Stock — — — — —(97) (3,501) (3,501) Cash Dividends ($1.04 per share) — — — (1,632)— — — (1,632) Other — — 1 — (14) — — (13) BALANCE, JANUARY 29, 20121,733 $87 $6,966 $17,246 $293 (196) $ (6,694) $17,898 Net Earnings— — — 4,535 — — — 4,535 Shares Issued Under Employee Stock Plans 211 678 — — — — 679 Tax Effect of Stock-Based Compensation — — 82 — —— — 82 Foreign Currency Translation Adjustments — — — — 100 — — 100Cash Flow Hedges, net of tax — — — — 5 — — 5 Stock Options, Awardsand Amortization of Restricted Stock — — 218 — — — — 218Repurchases of Common Stock — — — — — (74) (4,000) (4,000) CashDividends ($1.16 per share) — — — (1,743) — — — (1,743) Other — — 4— (1) — — 3 BALANCE, FEBRUARY 3, 2013 1,754 $88 $7,948 $20,038 $397(270) $(10,694) $17,777 Net Earnings — — — 5,385 — — — 5,385 SharesIssued Under Employee Stock Plans 7 — 103 — — — — 103 Tax Effect ofStock-Based Compensation — — 123 — — — — 123 Foreign CurrencyTranslation Adjustments — — — — (329) — — (329) Cash Flow Hedges,net of tax — — — — (12) — — (12) Stock Options, Awards andAmortization of Restricted Stock — — 228 — — — — 228 Repurchases ofCommon Stock — — — — — (111) (8,500) (8,500) Cash Dividends ($1.56per share) — — — (2,243) — — — (2,243) Other — — — — (10) — — (10)BALANCE, FEBRUARY 2, 2014 1,761 $88 $8,402 $23,180 $ 46 (381)$(19,194) $12,522
See accompanying Notes to Consolidated Financial Statements.
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A8 APPENDIX A Excerpts from the Fiscal 2013 Annual Report of TheHome Depot, Inc.
THE HOME DEPOT, INC. AND SUBSIDIARIES Consolidated Statements ofCash Flows
Fiscal Year Ended(1)
amounts in millions
February 2, 2014
February 3, 2013
January 29, 2012
CASH FLOWS FROM OPERATING ACTIVITIES: Net Earnings $5,385 $4,535$3,883 Reconciliation of Net Earnings to Net Cash Provided byOperating Activities: Depreciation and Amortization 1,757 1,6841,682 Stock-Based Compensation Expense 228 218 215 GoodwillImpairment — 97 — Changes in Assets and Liabilities, net of theeffects of acquisitions and disposition: Receivables, net (15)(143) (170) Merchandise Inventories (455) (350) 256 Other CurrentAssets (5) 93 159 Accounts Payable and Accrued Expenses 605 698 422Deferred Revenue 75 121 (29) Income Taxes Payable 119 87 14Deferred Income Taxes (31) 107 170 Other Long-Term Liabilities 13(180) (2) Other (48) 8 51 Net CashProvided by Operating Activities 7,628 6,9756,651 CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures,net of $46, $98 and $25 of non-cash capital expenditures in fiscal2013, 2012 and 2011, respectively (1,389) (1,312) (1,221) Proceedsfrom Sale of Business, net — — 101 Payments for BusinessesAcquired, net (206) (170) (65) Proceeds from Sales of Property andEquipment 88 50 56 Net Cash Usedin Investing Activities (1,507) (1,432) (1,129) CASH FLOWS FROMFINANCING ACTIVITIES: Proceeds from Long-Term Borrowings, net ofdiscount 5,222 — 1,994 Repayments of Long-Term Debt (1,289) (32)(1,028) Repurchases of Common Stock (8,546) (3,984) (3,470)Proceeds from Sales of Common Stock 241 784 306 Cash Dividends Paidto Stockholders (2,243) (1,743) (1,632) Other FinancingActivities (37) (59) (218) Net Cash Used in Financing Activities (6,652)(5,034) (4,048) Change in Cash and Cash Equivalents (531) 509 1,474Effect of Exchange Rate Changes on Cash and Cash Equivalents (34)(2) (32) Cash and Cash Equivalents at Beginning of Year 2,494 1,987 545 Cash and Cash Equivalentsat End of Year $1,929 $2,494 $1,987 SUPPLEMENTAL DISCLOSURE OF CASHPAYMENTS MADE FOR: Interest, net of interest capitalized$ 639 $ 617 $580 Income Taxes $2,839 $2,482$1,865
(1) Fiscal years ended February 2, 2014 and January 29, 2012include 52 weeks. Fiscal year ended February 3, 2013 includes 53weeks. See accompanying Notes to Consolidated FinancialStatements.
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Required: 1. What amount of net income was reported (inmillions) for the year ended February 2, 2014? $5,385 $78,812$27,390 $23,180 2. What amount of sales revenue (in millions) wasearned for the year ended February 2, 2014? $78,812 $5,385 $27,390$23,180 3. What was the cost (in millions) of the company’sinventory on February 2, 2014? $531 $5,385 $1,929 $11,057 4. Howmuch cash (in millions) does The Home Depot have on February 2,2014? $5,385 $11,057 $531 $1,929