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Statement of Changes in Owner's Equity, Statement of Cash Flows, and notes

Select any publicly traded U.S. company. You are preparing a report to management regarding the Statement of Changes in Owner's Equity, Statement of Cash Flows, and notes and other financial information. Prepare a 1,050-1,700-word position paper to the CEO explaining these statements and items and what they mean for your chosen company. Your paper should include discussions of the following:
a. The specific components of the Statement of Changes in Owners Equity and Statement of Cash Flows (line items and balances)
b. An analysis of the changes in those balances from the prior year, possible specific explanations for any changes from the previous year, and how management can use that information in helping the business to achieve its goals
c. Important notes to the financial statements and how they help management and investors make good business decisions
d. Explanations of other financial information (i.e., Management's Discussion and Analysis, comparative summary of key financial data) and how they help management and investors make good business decisions

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Statement of Changes in Owners Equity
Select any publicly traded U.S. company. You are preparing a report to management regarding the Statement of Changes in Owner's Equity, Statement of Cash Flows, and notes and other financial information. Prepare a 1,050-1,700-word position paper to the CEO explaining these statements and items and what they mean for your chosen company. Your paper should include discussions of the following:

I have selected Home Depot as an organization.

Founded in 1978, The Home Depot (Retail) is the world's largest home improvement specialty retailer and the second largest retailer in the United States, with fiscal 2005 sales of $81.5 billion. The company employs approximately 345,000 associates and has 2,056 stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, 10 Canadian provinces and Mexico. Through its Home Depot Supply Division, the company operates one of the nation's largest diversified wholesale distributors, with operations in 41 states and Canada. The Home Depot has been recognized by FORTUNE magazine as the No. 1 Most Admired Specialty Retailer and the No. 13 Most Admired Corporation in America for 2006. The financial highlights are given as follows:

a. The specific components of the Statement of Changes in Owners Equity and

Statement of Cash Flows (line items and balances)

Stockholder's equity

Stockholders' Equity 28-Jan-07 29-Jan-06 30-Jan-05
Misc Stocks Options Warrants - - -
Redeemable Preferred Stock - - -
Preferred Stock - - -
Common Stock 121,000 120,000 119,000
Retained Earnings 33,052,000 28,943,000 23,962,000
Treasury Stock -16,383,000 -9,712,000 -6,692,000
Capital Surplus
7,930,000 7,287,000 6,650,000
Other Stockholder Equity 310,000 271,000 119,000
Total Stockholder Equity 25,030,000 26,909,000 24,158,000

Statement of Cash Flows

Annual Cash Flow statement (Values in thousands) HOME DEPOT- Cash Flow statement

PERIOD ENDING 28-Jan-07 29-Jan-06 30-Jan-05
Net Income 5,761,000 5,838,000 5,001,000
Operating Activities, Cash Flows Provided By or Used In
Depreciation 1,886,000 1,579,000 1,319,000
Adjustments To Net Income 297,000 253,000 125,000
Changes In Accounts Receivables 96,000 -358,000 -266,000
Changes In Liabilities 231,000 -62,000 1,620,000
Changes In Inventories -563,000 -971,000 -849,000
Changes In Other Operating Activities -47,000 205,000 -46,000
Total Cash Flow From Operating Activities 7,661,000 6,484,000 6,904,000

Investing Activities, Cash Flows Provided By or Used In
Capital ...

Solution Summary

Statements of change in owner's equity are discussed.

$2.19