Purchase Solution

Home Depot: Analyze income statement, balance sheet, cash

Not what you're looking for?

Ask Custom Question

Use the attached annual report.

What does the income statement tell you about the company?
What does the balance sheet tell you about the company?
What does the statement of cash flows tell you about the company?

Purchase this Solution

Solution Summary

Your tutorial is 408 words and answers in two ways. First, it describes what each statement tells you in general (not specific to Home Depot). Then it tells you what you learned about Home Depot specifically from their Annual Report for the period ended Feb 1, 2009.

Solution Preview

What does the income statement tell you about the company?

The income statement summarizes the transactions with customers (sales) and assets or services used in selling to customers (expenses) for the three years presented.

The consolidated statement of earnings (page 28) tells me that their sales are down from prior years ($71 billion, down from $77 and $79 billion in 2008 and 2007). It tells me that overall profits are down too (See 2,260 versus 4,395 and 5,761). Not surprisingly, EPS is also down in 2009! The company has fewer transactions with customers and lower profits as a result in 2009 than the prior two years.

What does the balance sheet tell you about the company?

The balance sheet shows the assets (resources that have ...

Solution provided by:
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
Recent Feedback
  • "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
  • "Thank, this is more clear to me now."
  • "Awesome job! "
  • "ty"
  • "Great Analysis, thank you so much"
Purchase this Solution


Free BrainMass Quizzes
Lean your Process

This quiz will help you understand the basic concepts of Lean.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.