In its 2014 annual report, Home Depot reported that fiscal 2014 sales increased to $83.2 billion (from

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In its 2014 annual report, Home Depot reported that fiscal 2014 sales increased to $83.2 billion (from $78.8 billion the previous fiscal year), while profits increased to $6.3 billion (from $5.4 billion). Total assets decreased from $40.5 billion to $39.9 billion, while shareholders’ equity during the same time period decreased from $12.5 billion to $9.3 billion. The company’s cash balance decreased $206 million with cash flows from operating activities (+$8.2 billion), investing activities (−$1.3 billion), and financing activities (−$7.1 billion). Discuss possible explanations for these financial results.

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