1. Does the company report Accounts Receivable or an Allowance for Doubtful Accounts in its financial statements? Explain why it does or does not.
2. Based on your observations for requirement 1, describe the usefulness of the receivables turnover ratio and days to collect analyses for companies that are involved in home improvement retail sales.
Refer to the financial statements of The Home Depot in Appendix B at the back of this book or download the annual report from the Cases section of Connect.
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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February 2, February 3, amounts in millions, except share and per share data 2014 2013 ASSETS Current Assets: $ 1,929 $ 2,494 Cash and Cash Equivalents Receivables, net 1,398 1,395 Merchandise Inventories 10,710 11,057 Other Current Assets 895 773 Total Current Assets 15,279 15,372 Property and Equipment, at cost 39,064 38,491 Less Accumulated Depreciation and Amortization 15,716 14,422 Net Property and Equipment 23,348 24,069 1,170 Goodwill 1,289 Other Assets 473 602 $ 40,518 Total Assets $41,084 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts Payable $ 5,797 $ 5,376 Accrued Salaries and Related Expenses 1,428 1,414 Sales Taxes Payable 396 472 Deferred Revenue 1,337 1,270 Income Taxes Payable 12 22 Current Installments of Long-Term Debt 33 1,321 Other Accrued Expenses 1,746 1,587 Total Current Liabilities 10,749 11,462 Long-Term Debt, excluding current installments 14,691 9,475 Other Long-Term Liabilities 2,042 2,051 Deferred Income Taxes 514 319 Total Liabilities 27,996 23,307 STOCKHOLDERS' EQUITY Common Stock, par value $0.05; authorized: 10 billion shares; issued: 1.761 billion shares at February 2, 2014 and 1.754 billion shares at February 3, 2013; outstanding: 1.380 billion shares at February 2, 2014 and 1.484 billion shares at February 3, 2013 88 88 Paid-In Capital 8,402 7,948 Retained Earnings 23,180 20,038 Accumulated Other Comprehensive Income 46 397 Treasury Stock, at cost, 381 million shares at February 2, 2014 and 270 million shares at February 3, 2013 Total Stockholders' Equity (19,194) (10,694) 12,522 17,777 Total Liabilities and Stockholders' Equity $ 40,518 S41,084