Finding Financial Information

Refer to the financial statements of The Home Depot in Appendix A at the end of this book, or download the annual report from the Cases section of the text’s .

Required:

1. What amount of Net Sales does the company report during the year ended February 1, 2009?

2. Assuming that Cost of Sales is the same thing as Cost of Goods Sold, compute the company’s gross profit percentage for the most recent two years. Has it risen or fallen? Explain the meaning of the change.

3. Assume that The Home Depot experienced no shrinkage in the most current year. Using the balance sheet and income statement, estimate the amount of purchases in the year ended February 1, 2009.

4. Refer to the “Report of Independent Registered Public Accounting Firm” in the annual report. To what “inherent limitations” of internal control is KPMG referring?