1. Does The Home Depot hold more or less inventory than Rona at the end of their 2013 fiscal year, which ends on February 2, 2014?
2. Does The Home Depot follow the lower of cost and net realizable value rule? What method does The Home Depot use to determine the cost of its inventory?
3. Compute to one decimal place The Home Depot's inventory turnover ratio and days to sell for the 2013 fiscal year and compare these to Rona's. What does this analysis suggest to you?
Refer to the financial statements of Rona Inc. in Appendix A and The Home Depot's in Appendix B at the back of this book or download the annual reports from the Cases section of Connect.
Refer to Appendix A,
Refer to the financial statements of Rona Inc. in Appendix A and The Home Depot's in Appendix B at the back of this book or download the annual reports from the Cases section of Connect.
Refer to Appendix A,
RONA INC.
CONSOLIDATED STATEMENTS OF INCOME
AND STATEMENTS OF OTHER COMPREHENSIVE INCOME
Years ended December, and December 29, 2013
(in thousands of Canadian dollars, except per share amounts)

The related notes form an integral part of these consolidated financial statements.
RONA INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Years ended December 29, 2013 and December 30, 2012
(in thousands of Canadian dollars)

(a) Additional detail of share capital is provided in Note 23.
The related notes form an integral part of these consolidated financial statements.
RONA INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended December 29, 2013 and December 30, 2012
(in thousands of Canadian dollars)

The related notes form an integral part of these consolidated financial statements.
RONA INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
as at December 29, 2013, December 30, 2012 and December 26, 2011
(in thousands of Canadian dollars)

The related notes form an integral part of these consolidated financial statements.
On behalf of the Board,
(s) Réal Brunet......................................... (s) Robert Chevrier
Réal Brunet............................................... Robert Chevrier
Chairman of the Audit Committee .................. Executive Chairman of the Board
Appendix B,
THE HOME DEPOT INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

See accompanying Notes to Consolidated Financial Statements.
THE HOME DEPOT INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS

(1) Fiscal years ended February 2, 2014 and January 29, 2012 include 52 weeks. Fiscal year ended February 3, 2013 includes 53 weeks.
See accompanying Notes to Consolidated Financial Statements.
THE HOME DEPOT INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS

(1) Fiscal years ended February 2, 2014 and January 29, 2012 include 52 weeks. Fiscal year ended February 3, 2013 includes 53 weeks.
See accompanying Notes to Consolidated Financial Statements.
THE HOME DEPOT INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

See accompanying Notes to Consolidated Financial Statements.
THE HOME DEPOT INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS

(1) Fiscal years ended February 2, 2014 and January 29, 2012 include 52 weeks. Fiscal year ended February 3, 2013 includes 53 weeks.
See accompanying Notes to Consolidated Financial Statements.

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CONSOLIDATED STATEMENTS OF INCOME 2013 2012 Restated (Notes 10 and 32) $4,444,175 Continuing operations Revenues (Note 4) Earnings before interest, taxes, depreciation, amortization, impairment of non-financial assets, restructuring costs and other charges (Note 5.1) $4,192,192 162,088 188,654 Restructuring costs and other charges (Note 5.4) Depreciation, amortization and impairment of non-financial assets (Note 5.2) Operating (loss) income (82,879) (113,850) (34,641) (37,261) (107,261) 44,132 Finance costs (Note 26) (14,000) (48,641) (12,462) (Loss) income before income taxes 31,670 Income tax recovery (expense) (Note 7) 13,044 (8,281) Net (loss) income from continuing operations (35,597) 23,389 Discontinued operations Net loss from discontinued operations (Note 10) Net (loss) income Net (loss) income attributable to: Owners of RONA inc. - Continuing operations (117,417) $ (153,014) (5,128) 18,261 $ (36,614) (117,417) $ 21,603 Discontinued operations (5,128) (154,031) 16,475 Non-controlling interests 1,017 1,786 $ (153,014) $ 18,261 Net (loss) income per share attributable to owners of RONA inc. – basic and diluted (Note 30) (0.38) (0.96) (1.34) 2$ 0.10 Continuing operations Discontinued operations (0.04) %24 0.06 CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME 2013 2012 Restated (Notes 10 and 32) $ (153,014) $ 18,261 Net (loss) income Other comprehensive income (loss), net of income taxes : Items that will be reclassified subsequently to net income Cash flow hedges - Loss for the year - Reclassification to income (195) 1,374 (2,666) 574 Impact of foreign currency translation related to the net investment in an associate 306 (120) (2,212) 1,485 Items that will not be reclassified subsequently to net income Remeasurements of net defined benefit liability (Note 27) 2,130 (1,881) (4,093) Total other comprehensive income (loss) 3,615 Total comprehensive (loss) income $ (149,399) 14,168 Total comprehensive (loss) income attributable to: Owners of RONA inc. $ (150,416) 12,382 Non-controlling interests 1,017 1,786 $ (149,399) 2$ 14,168