Using Home Depot 2007 Financial Statements from Fin & Man Accounting 15th Edition. 1.Calculate the percentage change in the current ratio for the years 2007 and 2008.
20082007
Current Ratio1.15:11.39:1
Changes in percentagedecrease by 17.27%
2.What were the diluted earnings per share for fiscal year 2008?
Diluted earnings from continuing operation $2.27
Diluted earnings from discontinued operation$0.10
Diluted earnings per share$2.37
3.What is the company policy regarding goodwill?
Goodwill represents the excess of purchase price over the fair value of the assets, the company do not amortize the goodwill but evaluate the recoverability of the goodwill in the third quarter of each year.
4.How many shares of common stock were outstanding at January 28, 2007? February 3, 2008?
20082007
Common share outstanding1.690 billion1.970 billion
5.Depreciation and amortization expense represented what percent of net operating income for fiscal year 2007?
1411/9047 = 15.59%
6.How much were the dividends per share in fiscal year 2007?
$0.675
7.What is the company debt ratio for fiscal year 2008?
26610/44324 = 60%
8.What does the Company use for estimating useful lives for Property and Equipment depreciation?
Original term of the lease or useful life of the improvements is used for estimating useful lives and the company uses straight line method for depreciation.
9.What is the Company policy for the sale of and recognition of the revenue on gift cards?
Company records deferred revenue for the sale of gift cards and transfer it to sales revenue at the time of redemption of gift cards.
10.What is the average square foot size of the Home Depot stores?
105
Approximately how many different kinds of building materials and home improvement supplies does each store stock?
They are six such as lumber, building material, hardware, lighting, kitchen/bath and millwork.
How many stores was the company operating at the end of fiscal year 2007?
2234
11.What was the percentage change in net income from January 28, 2007 to February 3, 2008?
20082007
Net income43955761
Decrease by 23.71%
12.How many shares of Treasury stock were there at January 28, 2007 and February 3, 2008?
20082007
Treasury stock numbers8 million451 million
13.What was the amount of receivables due from customers at January 28, 2007?
$3223 million
14.What was the total cost relating to prepayments of production costs for print and broadcast advertising for fiscal years 2006 and 2007?
20072006
Prepaid Advertising expenses$31 million$44 million
15.In fiscal year 2007, what was the Company's gross advertising expense?
44-31 = $13 million