Refer to the financial statements of The Home Depot in Appendix A at the end of this book, or download the annual report from the Cases section of the text's Web site at www.mhhe.com/ phillips4e.
Required:
1. On what dates did the company's fiscal year end in 2011 and 2010?
Current Prior
a. January 31, 2011.......... January 31, 2010
b. January 31, 2011.......... February 1, 2010
c. January 30, 2011.......... January 31, 2010
d. January 30, 2011.......... February 1, 2010
2. Which of the following are the amounts in the company's accounting equation (A = L + SE) for the year ended in January 2011?
a. $40,877 = $21,484 + $19,393
b. $40,125 = $21,236 + $18,889
c. $67,997 = $64,659 + $3,338
d. $25,060 = $10,122 + $14,938
3. What is the company's current ratio at the end of the January 2011 reporting period?
a. 1.99
b. 1.64
c. 0.75
d. 1.33
4. What does the company's current ratio in requirement 3 indicate?
a. The company has nearly two dollars of current assets for every dollar of liabilities due in the next year.
b. The company has less than one dollar of current assets for every dollar of liabilities due in the next year.
c. The company has between one and two dollars of current assets for every dollar of liabilities due in the next year.
d. The current ratio does not indicate a company's ability to fulfill liabilities due in the next year.