60.1K

Verified Solution

Link Copied!

included in Appetit LO13-1, LO13-2, LO13-4 EXERCISE 13.15 Home Depot, Inc. Using a Statement of Cash Flows Statements of cash flow for Home Depot, Inc., for 2013, 2014, and 2013 are include of this text. a. Focus on the information for 2015 (year ending January 31, 2010). How does compare with net cash provided by or used in operations, and what accounts for the difference between the two amounts? does not eating unts for the per the major uses of cash, other than operations, and how have these varied over the three-year period presented? c. Cash flows from both investing and financing activities have been negative for all three years presented. Considering Home Depot's overall cash flows, including its cash flows from opera- tions, would you say that this leads to a negative interpretation of Home Depot's cash position at January 31, 2016? Why or why not? d. Calculate the amount of free cash flow for each of 2013, 2014 ans 5 and comment briefly on your conclusion concerning this information. Appendix AHD THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS J 3 2016 1. February 1. 2015 Four Moin millions CASH FLOWS FROM OPERATING ACTIVITIES: Net Farnings Reconciliation of Net Earnings to Net Cash Provided by Operating Activities Depreciation and Amortiration Stock-Based Compensation Expense Gain on Sales of Investments Changes in Assets and Liabilities to the sffects of acquisitions Receivables, net Merchandise Inventories Other Current Assets Accounts Payable and Accrued Expenses Deferred Revenue Income Taxes Payable Deferred Income Taxes # (181) 15.15 244 146 *** 159 (105 9.373 (1.503) (1.442) 322 (200) (1,666) (2.982) (1.271) 290 64 3,991 sum (1.289) 8546) Other Net Cash Provided by Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures, net of S165, $217 and 546 of non-cash capital expenditures in fiscal 2015, 2014 and 2013, respectively Proceeds from Sales of Investments Payments for Businesses Acquired.net Proceeds from Sales of Property and Equipment Net Cash Used in Investing Activities CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from Short-Term Borrowings.net Proceeds from Long-Term Borrowings, net of discounts Repayments of Long-Term Debt Repurchases of Common Stock Proceeds from Sales of Common Stock Cash Dividends Paid to Stockholders Other Financing Activities Net Cash Used in Finan Change in Cash and Cash out Effect of Exchange Rate Change s and Cash Equivalents Cash and Cash Equivalents as Beginning of Year Cash and Cash Equivalents at End of Year SUPPLEMENTAL DISCLOSURE OF CASH PAYMENTS MADE FOR: Interest, net of interest capitalized Income Taxes (39) (7,000) 228 (3,031) 1.981 (39) (7.000) 252 (2,530) (25) 7,071) (2.343) (5,787) 604 (100) (530) 34 (111) 1.723 2,216 (106) 1.929 1.723 $ $ $ 1.929 $ $ 84 3,853 $ $ 782 3,435 $ $ 699 2.839 (1) Fiscal years ended January 31, 2076, February 1, 2015 and February 2, 2014 include 52 weeks. See accompanying Notes to Consolidated Financial Statements. A-4 Appendix A Home Depot 2015 Financial Statements THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS Fiscal Year Ended) January 31, February 1, February 2 2016 2015 2014 S 88,519 $ 83,176 $78,812 58,254 54.787 51 30,265 28,389 26,915 16.122 1.627 16,801 1,690 18,491 11.774 16,280 1.640 17.920 10,469 17,749 9.166 amounts in millions, except per share data NET SALES Cost of Sales GROSS PROFIT Operating Expenses: Selling. General and Administrative Depreciation and Amortization Total Operating Expenses OPERATING INCOME Interest and Other (Income) Expense: Interest and Investment Income Interest Expense Interest and Othernet EARNINGS BETORE PROVISION FOR INCOME TAXES Provision for Income Taxes NET EARNINGS Weighted Average Common Shares BASIC EARNINGS PER SHARE Diluted Weighted Average Common Shares DILUTED EARNINGS PER SHARE $ (166) 919 753 11,021 4,012 7,009 1,277 5.49 1,283 5.46 $ (337) 830 493 9,976 3,631 6,345 1,338 4.74 1,346 4.71 $ (12) 711 699 8,467 3,082 5,385 1,425 3.78 1,434 3.76 $ $ $ $ $ $ (1) Fiscal years ended January 31, 2016, February 1, 2015 and February 2, 2014 include 52 weeks. See accompanying Notes to Consolidated Financial Statements. THE HUME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME amounts in millions Fiscal Year Ended) January 31, February 1, February 2, 2016 2015 2014 $ 7,009 $ 6,345 S 5,385 Net Earnings Other Comprehensive Loss: eign Currency Translation Adjustments Cash Flow Hedges, net of tax (412) (34) (510) 11 - Other (329) (12) (10) (351) 5.034 Total Other Comprehensive Loss COMPREHENSIVE INCOME (446) 6,563 (498) 5,847 $ $ $ al) Fiscal years ended January 31, 2016, February 1, 2015 and February 2, 2014 include 52 weeks. See accompanying Notes to Consolidated Financial Statements. Appendix A Home Depot 2015 Financial Statements THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS January 31, February 1 2016 2015 2.216 1.890 11.09 1,078 16,993 39.266 17,075 22.191 2,102 1,263 42,549 1,723 1.484 11.079 1,016 15.02 38,513 15.793 22720 1.353 571 39,946 $ $ $ $ 290 5.807 1,391 350 6,565 1.515 476 1,566 34 1,468 MAMA in millions, even share and per share data ASSETS Current Assets: Cash and Cash Equivalents Receivables, net Merchandise Inventories Other Current Assets Total Current Assets Property and Equipment, at cost Less Accumulated Depreciation and Amortization Net Property and Equipment Goodwill Other Assets Total Assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Short-Term Debt Accounts Payable Accrued Salaries and Related Expenses Sales Taxes Payable Deferred Revenue Income Taxes Payable Current Installments of Long-Term Debt Other Accrued Expenses Total Current Liabilities Long-Term Debt, excluding current installments Other Long-Term Lisbilities Deferred Income Taxes Total Liabilities STOCKHOLDERS' ROUTZT Common Stock, par velite 30.05.uthorized: 10 billion shares, issued: 1.772 billion shares at January 31, 2016 and 1.768 Sion shares at February 1, 2015; outstanding: 1.252 billion shares at January 31, 2016 and 1.307 billion shares at February 1, 2015 Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock, at cost, 520 million shares at January 31, 2016 and 461 million shares at February 1, 2015 Total Stockholders' Equity Total Liabilities and Stockholders' Equity See accompanying Notes to Consolidated Financial Statements. 77 1,943 12,526 20.888 1,965 854 36,233 38 1.806 11.250 16.869 1.844 30.624 88 9,347 30,973 (898) 8.885 26,995 (452) (33,194) 6,316 (26.194) 9.322 39.946 42,549 $ THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY Accumulated Other Comprehensive Income (Loss) 397 Treasury Stock - Stockholders Shares Amount Equity (270) $ (10,694) $ 17,777 5,385 103 123 (329) (12) 103 IIIIIIIIII 211 SI (8.500) 46 (381) S (19,194) $ 228 (8,500) (2.243) (10) 12,522 6,345 122 136 (510) 11 $ (510) 1 III Common Stock - Paid In Retained in ons, except per share data Shares Amount Capital Earnings Ralance, Ferenzy 3, 2013 1,754 $ 88 $ 7,948 $ 20,038 Net Earnings 5,385 Sures Issu e r Employee Stock Plans Tax Effect Sce-Based Compensation Foreign Currency Translation Adjustments Cash Flow edges, net of tax Stock Options, Awards and Amortization of Restricted Stock Repurchases of Common Stock Cash Dividends ($1.56 per share) (2.243) Other Balance, February 2, 2014 1,761 88 $ 8,402 $ 23,180 Net Earnings 6,345 Shares Issued Under Employee Stock Plans Tax Effect of Stock-Based Compensation Foreign Currency Translation Adjustments Cash Flow Hedges, net of tax Stock Options, Awards and Amortization of Restricted Stock Repurchases of Common Stock Cash Dividends ($1.88 per share) (2.530) Other Balance, February 1, 2015 1,768 $ 88 $ 8,885 $ 26,995 Net Earnings 7,009 Shares Issued Under Employee Stock Plans Tax Effect of Stock-Based Compensation Foreign Currency Translation Adjustments Cash Flow Hedges, net of tax Stock Options, Awards and Amortization of Restricted Stock Repurchases of Common Stock Cash Dividends ($2.36 per share) (3,031) Balance, January 31, 2016 1,772 $ 88 $ 9.347 $ 30,973 See accompanying Notes to Consolidated Financial Statements. 11111111 (80) (7.000) 225 (7,000) (2.530) LEIE TIBI (461) $ (26,194) $ (452) $ 9,322 7.009 73 145 (412) (34) IIIIIII (4123 (34) (59) (7.000) 244 (7.000) (3.031) 6,316 (898) (33,194) (520) $ $ $ THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Fiscal Year Ended) January 31, February 1, February 2 2016 2015 2014 US 6,345 $ 7.009 S $ 5. 35 1.757 1,863 244 1.786 225 (323) GMO i millions CASH FLOWS FROM OPERATING ACTIVITIES: Net Earnings Reconciliation of Net Earnings to Net Cash Provided by Operating Activities Depreciation and Amortization Stock-Based Compensation Expense Gain on Sales of Investments Changes in Assets and Liabilities, net of the effects of acquisitions Receivables, net Merchandise Inventories Other Current Assets Accounts Payable and Accrued Expenses Deferred Revenue Income Taxes Payable Deferred Income Taxes (81) (124) (15) (18) (546) (5) 888 109 154 (455) (5) 605 146 168 119 (311 15 (33) 9.373 159 (104) 8,242 7,629 (1.389) (1,503) 144 (1.666) (1.442) 323 (200) 48 (1.271) (206) (2.982) (1.507) 60 3,991 (39) (7.000) 5.222 (1.289) (8.546) Other Net Cash Provided by Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures, net of $165. 5217 and $16 of non-cash capital expenditures in fiscal 2015 2014 and 2013, respectively Proceeds from Sales of lavestments Payments for Businesses Acquired, net Proceeds from Sales of Property and Equipment Net Cash Used in Tevesting Activities CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from Short-Term Cocoving, net Proceeds from long-Term Porrowings, net of discounts Repayments of Long-Terin Debt Repurchres of Common Stock Proceeds from Sales of Common Stock Cash Dividends Paid to Stockholders Other Financing Activities Net Cash Used in Financing Activities Change in Cash and Cash Equivalents Effect of Exchange Rate Changes on Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year SUPPLEMENTAL DISCLOSURE OF CASH PAYMENTS MADE FOR: Interest, net of interest capitalized Income Taxes 241 228 (3,031) 290 1,981 (39) (7.000) 252 (2.530) (25) 7,071) (100) (106) 1,929 1.723 (2.243) (37) (6.652) (531) (5.787) 604 (111) 1,723 2.216 2.494 1.929 $ S $ $ $ 874 3,853 $ $ 782 3.435 $ $ 639 2,839 7) Fiscal years ended January 31, 2016, February 1, 2015 and February 2, 2014 include 52 weeks. ce accompanying Notes to Consolidated Financial Statements