http://lectures.mhhe.com/connect/0078025915/appendix_a.pdf Refer to the financia

Question

http://lectures.mhhe.com/connect/0078025915/appendix_a.pdf

Refer to the financial statements of The Home Depot in Appendix A.

Refer to the financial statements of The Home Depot in Appendix A.

Required: 1. On what dates did the company’s 2013 and 2012 fiscal years end? Current Prior February 2, 2014       February 3, 2013 December 31, 2013    December 31, 2012 February 3, 2013       February 2, 2012 January 31, 2014       January 31, 2013

2. Which of the following are the amounts in the company’s accounting equation (A = L + SE) for the 2013 fiscal year end? $78,812 = $5,385 + $73,427 $15,279 + $23,348 = $40,518 $41,084 = $23,307 + $17,777 $40,518 = $27,996 + $12,522

3. What is the company’s current ratio at February 2, 2014? 1.45 0.38 0.70 1.42

4. What does the company’s current ratio in requirement 3 indicate? Less than half of the company's liabilities are current. Less than half of the company's assets are current. The company has less than one dollar of current assets for every dollar of liabilities due in the next year. The company has more than one dollar of current assets for every dollar of liabilities due in the next year.

Explanation / Answer

1)February 2, 2014       February 3, 2013

2) $40,518 = $27,996 + $12,522

3) 1.42

current ratio= current assets / current liabilities

=15279/10749= 1.42

4)The company has more than one dollar of current assets for every dollar of liabilities due in the next year.

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