Comparative Balance Sheet

January 31, 2014 & 2013

(Dollars in millions)

2014 2013

ASSETS

Cash & Cash Equivalents 95 33

Accounts Receivable 641 658

Merchandise Inventory 592 541

Total Current Assets 1328 1232

Property, Buildings &Equipment 1521 1402

Less Accumulated Depreciation -702 -601

NET PPE 819 801

Total Assets 2147 2033

LIABILITIES & STOCKHOLDERS' EQUITY

Accounts Payable 278 234

Accrued Liabilities 201 197

Accrued Income Taxes Payable 32 26

Notes Payable 46 42

Total Current Liabilities 557 499

Long-Term Debt 451 496

Deferred Income Taxes 51 53

Total Liabilities 1059 1048

STOCKHOLDERS' EQUITY

Common Stock 165 163

Retained Earnings 1011 899

Total Stockholders’ Equity 1176 1062

Total Liabilities & Stockholders' Equity 2235 2110

Income Statement Statement of Retained Earnings

For the year ended January 31, 2014 For the year ended January 31, 2014

(Dollars in millions) (Dollars in millions)

Net Sales 3644 Retained Earnings January 31, 2014 899

Less Cost of Goods Sold 2483 Add: Net Income 126

Gross Profit or Margin 1161 1025

Less operating Expenses 951 Less: Dividends 32

Net Operating Income 210 Retained Earnings, January 31, 2015 993

Non-operating items:

Gain on sale of store 7

Income Before taxes 217

Less income taxes 91

Net Income 126

Additional Information: Assume that a store, with a cost of 23, was sold for cash of 16, and had A/D of 18.

Instructions: Prepare a Statement of Cash Flows using the indirect method