Essay about Home Depot Comprehensive Problem

649 WordsOct 24, 20133 Pages
1. Calculate the current ratio for y/e 2/1/09 and y/e 1/31/10 The current ratio for year ending 2/1/09 is 1.20:1=$13,362/$11,153. The current ratio for year ending 1/31/10 is 1.34:1=$13,900/$10,363. Reference: Pg. A-4, Consolidated Balance Sheets, Current Assets & Current Liabilities or Pg. A-12, 10-Year Summary of Financial and Operating Results, Balance Sheet Data and Financial Ratios 2. What were the diluted earnings per share for y/e 2/3/08? The diluted earnings for year ending 2/3/08 were $2.27 per share. Reference: Pg. A-12, 10-Year Summary of Financial and Operating Results, Statement of Earnings Data 3. What is the company policy regarding goodwill? Home Depot declares in the Notes to Consolidated Financial…show more content…
The estimated years of useful lives of company property and equipment are as follows: buildings 5-45 years, furniture/fixtures/equipment 3-20 years, and leasehold improvements 5-45 years. Reference: Pg. A-10, Notes to Consolidated Financial Statements, Depreciation and Amortization section 9. What is the Company policy for the sale of and recognition of the revenue on gift cards? The sale of gift cards are recorded as deferred income on the balance sheet the revenue is recognized once the gift card is redeemed. The company recognizes what is called gift card breakage as a reduction on the statement of earnings. This figure represents what the company thinks will be redeemed by customers and is an estimate based on past customer redemption patterns Reference: Pg. A-9, Notes to Consolidated Financial Statements, Revenues section 10. What is the average square foot size of the Home Depot stores? Home Depot stores average at 105,000 square feet in size. The stores stock 30 to 40 thousand different types of building materials and improvement supplies. In the fiscal year ending 2009 the company was operating 2,244. Reference: Pg. A-7, Notes to Consolidated Financial Statements, Business, Consolidation and Presentation section 11. What were the net earnings at 2/1/09 and 2/3/08? Home Depots net earnings were 2.260

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