Home Depot is the largest home improvement retailer in the United States and one of the largest retailers.
Home Depot is income statements for 2003-2005 are below, along with an extract from its tax footnote. Reformulate the income statement for 2005 with the appropriate tax allocation between operating activities and financing activities. Apply both the top-down and bottom-up methods. Calculate the effective tax rate on operations for 2005,

The provision for income taxes consisted of the following (amounts in millions):

The Company€™s combined federal, state, and foreign effective tax rates for fiscal 2005, 2004, and 2003, net of offsets generated by federal, state, and foreign tax benefits, were 36.8%, 37.1%, and 37.6%, respectively.
The reconciliation of the provision for income taxes at the federal statutory rate of 35% to the actual tax expense for the applicable fiscal years is as follows (amounts inmillions):

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THE HOME DEPOT, INC. AND SUBSIDIARIE!S Consolidated Statements of Earnings amcunts in millons, except per-share dea) Fiscal Year Ended January 30, February 1 February 2, Seling and store operating Genera ad administrative Interest and imestment xcome Earnings before provision for income taxes Provision foe inccme taves Weighted-average cenmon shares Basic eanngs per shat Dluted weighted-average comenon shares Diuted earnings per share Fiscal Year Ended January 30, 2005 February f, 2004 February 2. 2003 Curreat 51,679 239 $1,520 Federai State Foxeign S2,153 279 139 2,571 107 1,934 2,035 Deferred 573 27 174 Federal State Foreign 304 52 (16) 340 2,911 605 $2,539 173 2,208 Totel