2023 This Comprehensive Problem is to acquaint you with the content of the | Assignments Online

This Comprehensive Problem is to acquaint you with the content of the 2009 financial statements of Home Depot, Inc., reproduced in Appendix A of this textbook. (The 2009 financial statements are for the fiscal year ended January 31, 2010.) The problem contains three major parts, which are independent of one another: Part I is designed to familiarize you with the general contents of a company’s financial statements; Part II involves analysis of the company’s liquidity; and Part III analyzes the trend in its profitability. Part I Annual reports include not only comparative financial statements but also other sources of information, such as: ‘ A multiyear summary of financial highlights, a summary of key statistics for the past 5 or 10 years Several pages of Notes that accompany the financial statements. Reports by management and by the independent auditors in which they express their respective responsibilities for the financial statements. Instructions Answer each of the following questions and briefly explain where in the statements, notes, or other sections of the annual report you located the information used in your answer. a.How many years are covered in each of the primary comparative financial statements? Were all of these statements audited? Name the auditors. What were the auditors’ conclusions concerning these statements? b.Home Depot, Inc., combines its statement of retained earnings with another financial statement. Where are details about changes in the amount of retained earnings found? c.Over the three years presented, have the company’s annual net cash flows been positive or negative from (1) operating activities, (2) investing activities, and (3) financing activities? Has the company’s cash balance increased or decreased during each of these three years?