The following financial statement excerpt is taken from the 2015 Annual Report (for the fiscal year ended January 31, 2016) for The Home Depot, Inc.:

1. The Cost of Sales amount on The Home Depot, Inc., consolidated statements of earnings represents the net cost of the goods that were sold for the period. For the year ended January 31, 2016, what percentage of net sales was the cost of sales? For the year ended February 1, 2015?
2. What factors might affect a merchandising company’s cost of sales from one period to another?

On The Home Depot, Inc., website (www.homedepot.com), locate the Investor Relations’ section.

3. Review the consolidated statements of operations found in the current year’s annual report.
4. What amount is reported for cost of sales?
5. What amount is reported for net sales?