Refer to the financial statements of The Home Depot in Appendix A at the end of this book.

Required:

1. Which of the two basic reporting approaches for the cash flows from operating activities did The Home Depot use?

a. Direct

b. Indirect

2. What amount of income tax payments did The Home Depot make during the year ended January 29, 2017?

a. $639 million

b. $4,623 million

c. $3,082 million

d. $12 million

3. In the fiscal year ended January 29, 2017, The Home Depot generated $9,783 million from operating activities. Indicate where this cash was spent by listing the two largest cash outflows.

a. Share Repurchase ($7,000 million) and Cash Dividends ($3,404 million)

b. Share Repurchase ($6,880 million) and Capital Expenditures ($1,621 million)

c. Long-Term Debt Repayments ($3,045 million) and Share Repurchase ($6,880 million)

d. Cash Dividends ($3,404 million) and Share Repurchase ($6,880 million)