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Question 2 (25 points) In answering the following questions, please refer to the attached excerpts from the annual report of The Home Depot for the year ended January 31, 2021 (fiscal year 2020). Required: a. Describe the fiscal year 2020 Accounting Equation for Home Depot. What was the ending balance of Home Depot's Current Assets in 2020? b. What was the percentage increase in Accrued Salaries and related expenses from 2019 to 2020? Explain why Accrued Salaries" are listed as a liability, and what may have led to a change in the balance. c. What was the Retained Earnings balance at the end of 2020? What was the ending balance in 2019? Using the Retained Earnings relationship discussed in class, what was the value of the dividends in 2020? d. What was the Total Cash used in Investing Activities in 2020? What was the item that contributes most to the cash flow from this category? Is it necessarily a good (bad) sign that there is a cash inflow (outflow)? e. The "Great Resignation" has prompted many to consider the importance of corporate culture in organizations. Many people suggest that having a good "company culture" can help to retain and attract new employees. Does company culture show up as an asset on Home Depot's balance sheet? f. What was Home Depot's Operating Income in 2020? How about in 2019? Conceptually, explain what operating income is and explain why operating income may be larger than net income. g. Home Depot reports their Statement of Cash Flows using the Indirect Method. What was the adjustment that Home Depot made in relation to Stock-Based Compensation? Conceptually, why does Home Depot make an adjustment for Stock-Based Compensation? h. What was Home Depot's total Long Term Debt in 2020? What was the total cash used to repay long-term debt in 2020? Question 2 (25 points) In answering the following questions, please refer to the attached excerpts from the annual report of The Home Depot for the year ended January 31, 2021 (fiscal year 2020). Required: a. Describe the fiscal year 2020 Accounting Equation for Home Depot. What was the ending balance of Home Depot's Current Assets in 2020? b. What was the percentage increase in Accrued Salaries and related expenses from 2019 to 2020? Explain why Accrued Salaries" are listed as a liability, and what may have led to a change in the balance. c. What was the Retained Earnings balance at the end of 2020? What was the ending balance in 2019? Using the Retained Earnings relationship discussed in class, what was the value of the dividends in 2020? d. What was the Total Cash used in Investing Activities in 2020? What was the item that contributes most to the cash flow from this category? Is it necessarily a good (bad) sign that there is a cash inflow (outflow)? e. The "Great Resignation" has prompted many to consider the importance of corporate culture in organizations. Many people suggest that having a good "company culture" can help to retain and attract new employees. Does company culture show up as an asset on Home Depot's balance sheet? f. What was Home Depot's Operating Income in 2020? How about in 2019? Conceptually, explain what operating income is and explain why operating income may be larger than net income. g. Home Depot reports their Statement of Cash Flows using the Indirect Method. What was the adjustment that Home Depot made in relation to Stock-Based Compensation? Conceptually, why does Home Depot make an adjustment for Stock-Based Compensation? h. What was Home Depot's total Long Term Debt in 2020? What was the total cash used to repay long-term debt in 2020

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