The following excerpt was taken from The Home Depot, Inc. 2009 Annual Report (for the fiscal year ended January 31, 2010):

Analyze:
1. What percentage of total current assets is made up of cash and cash equivalents at January 31, 2010?
2. Cash receipt and cash payment transactions affect the total value of a company's assets. By what amount did the category "Cash and cash equivalents" change from February 1, 2009, to January 31, 2010?
3. If accountants at The Home Depot, Inc. failed to record cash receipts of $125,000 on January 31, 2010, what impact would this error have on the balance sheet category "Cash and cash equivalents"?

Transcribed Image Text:

The Home Depot, Inc. Consolidated Balance Sheets As of Miltions except for numbers of shares and per-share dato Jan. 31, 2010 Feb. 1, 2009 ASSETS Current Assets: Cash and cash equivalents S 1,421 5519 Total current assets $13,900 $13,362 Cash and Cash Equivalents: Short-term investments that have maturities of three months or less when purchased are considered to be cash equivalents.