The financial statements for Home Depot, Inc., are presented in Appendix E at the end of the text. The following additional information (in millions) is available: Accounts receivable at January 28, 2001 …… $ 835 Inventories at January 28, 2001 ……….. 6,556 Total assets at January 28, 2001 ………. 21,385 Stockholders’ equity at January 28, 2001 ……. 15,005 Instructions 1. Determine the following measures for years ending February 2, 2003 and February 3, 2002, rounding to two digits after the decimal place. a. Working capital b. Current ratio c. Quick ratio d. Accounts receivable turnover e. Number of days’ sales in receivables f. Inventory turnover g. Number of days’ sales in inventory h. Ratio of liabilities to stockholders’ equity i. Ratio of net sales to average total assets j. Rate earned on average total assets k. Rate earned on average common stockholders’ equity l. Price-earnings ratio, assuming that the market price was $21.31 per share on February 2, 2003 and $49.70 on February 3, 2002. m. Percentage relationship of net income to net sales 2. What conclusions can be drawn from these analyses?
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