Balance sheet equity

obtain the fiscal 2022 Annual Report for their assigned company and answer the questions in the blue cells in the excel template attached below. The 2022 Report is in a blue link in the Excel sheet attached below . 

Home Depot

GROUP # _______ For HOME DEPOT do the following: Obtain the fiscal 2021 annual report at:

https://ir.homedepot.com/~/media/Files/H/HomeDepot-IR/2022/2021_AnnualReport_IR_Site_FINAL

Provide the following from the

January 30, 2022

financial statements in the blue box provided. From the CONSOLIDATED BALANCE SHEETS I. What is the accounting equation?

January 30, 2022

January 31, 2021 Total Assets = Total Liabilities + Total shareholders’ (deficit) equity What story does the results of the accounting equation tell? Detail the components of Stockholder’s Equity:

January 30, 2022
January 31, 2021
Common Stock Paid in Capital Retained Earnings Accumulated Other Comprehensive Income Treasury Stock Total stockholders’ (deficit) equity From the CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY II. Roll forward the Retained Earnings balance Fiscal 2021 Fiscal 2020 Fiscal 2019 Beginning Balance Cumulative effect of accounting changes Net Earnings Cash Dividends Other Ending Balance Roll forward the Treasury Stock balance

Fiscal 2021
Fiscal 2020
Fiscal 2019

Beginning Balance

Repurchase of Common Stock

Ending Balance

III. Calculate basic Earnings per Share using a simple average (beg + end oustanding shares / 2), refer to page 13-27 of your textbook (1) Calculate EPS from info in the financial statements Item 8., not elsewhere in the annual report and (2) do not use EPS disclosed in the Statement of Earnings, calculate as noted above Formula Amounts Answer E.g. A – B = C 100 – 70 $ 30 I

V. Calculate the Price/Earnings Ratio, use market price as of Febraury 23, 2022 (day after press release) – refer to page 13-28 of your textbook

Formula
Amounts
Answer

E.g. A – B = C
100 – 70
$ 30

V.

What was the cash dividend per share declared in fiscal 2021? Found in Note 6. STOCKHOLDER’S EQUITY What is the EPS calculated in III. above? Does Home Depot seem to be pay a signifcant amount of earnings as dividends? VI. Cash Flow Analysis (Refer to CONSOLIDATED STATEMENTS OF CASH FLOWS) How much cash did Home Depot generate from Operations? 16,571 How much proceeds from long-term debt issuances did Home Depot receive in 2021? 2,979 Total $ 19,550 How much cash did Home Depot use to benefit owners? From – Repurchases of Common Stock 14,809 From – Cash Dividends 6,985 $ 21,794 Refer to Note 4. DEBT AND DERIVATIVE INSTRUMENTS. What is the average interest rate on the September 2021 Senior Notes debt offerings? Read the following two articles about stock buybacks? https://hbr.org/2020/01/why-stock-buybacks-are-dangerous-for-the-economy https://hbr.org/2017/09/the-case-for-stock-buybacks Do you agree with Home Depot’s strategy regarding stock buybacks? Why or why not? VII. Refer to Note 8. STOCK-BASED COMPENSATION, under Stock Options, section that says “The following table presents a summary of stock option activity by number of shares…” What is the Weighted Average Exercise Price per share of outstanding stock options at the end of the year? $ 150.30 What is the price of the Home Depot common stock share at the close of February 23, 2022? see aboe $ 300.88

https://ir.homedepot.com/~/media/Files/H/HomeDepot-IR/2022/2021_AnnualReport_IR_Site_FINAL

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