Question: I am trying to do the horizontal analysis and vertical analysis for my homework in regards to balance sheet and income statement from Home Depot.

I am trying to do the horizontal analysis and vertical analysis for my homework in regards to balance sheet and income statement from Home Depot. When I calculate the formulas for them, it is saying that the answer is wrong. I seriously need some help to understand what I am doing wrong. I have tried doing the liquidity ratios and somehow I am still getting the wrong answers but I am having serious trouble understanding.

Balance Sheet

Cash & cash equivalents

y3 2216000

y2 1723000

Receivables, net

y3 1890000

y2 1484000

Merchandise inventories

11809000

11079000

Other current assets

1078000

1016000

Total current assets

16993000

15302000

Land

8149000

8243000

Buildings

17667000

17759000

Furniture, fixtures & equipment

10279000

9602000

Leasehold improvements

1481000

1419000

Construction in progress

670000

585000

Capital leases

1020000

905000

Property & equipment, at cost

39266000

38513000

Less: accumulated depreciation & amortization

17075000

15793000

Net property & equipment

22191000

22720000

Notes receivable

Goodwill

2102000

1353000

Other assets

1263000

571000

Total assets

42549000

39946000

Short-term debt

350000

290000

Accounts payable

6565000

5807000

Accrued salaries & related expenses

1515000

1391000

Sales taxes payable

476000

434000

Deferred revenue

1566000

1468000

Income taxes payable

34000

35000

Current installments of long-term debt

77000

38000

Other accrued expenses

1943000

1806000

Total current liabilities

12526000

11269000

Senior notes

20201000

16220000

Capital lease obligations

763000

684000

Other long-term debt

1000

3000

Total debt

20965000

16907000

Less: current installments

77000

38000

Long-term debt, excluding current installments

20888000

16869000

Other long-term liabilities

1965000

1844000

Deferred income taxes

854000

642000

Total liabilities

36233000

30624000

Common stock

88000

Paid-in capital

9347000

8885000

Retained earnings

30973000

26995000

Accumulated other comprehensive income (loss)

-898000

-452000

Treasury stock, at cost

33194000

26194000

Total stockholders' equity

6316000

9322000

Income Statement

Report Date

Net sales

88519000

83176000

Cost of sales

58254000

54222000

Gross profit

30265000

28954000

Selling, general & administrative expenses

16801000

16834000

Depreciation & amortization expense

1690000

1651000

Total operating expenses

18491000

18485000

Operating income

11774000

10469000

Interest & investment income

166000

337000

Interest expense

919000

830000

Other interest & other income (expense)

Interest & other income (expense), net

-753000

-493000

Earnings before provision for income taxes - United States

10207000

9217000

Earnings before provision for income taxes - foreign

814000

759000

Earnings before provision for income taxes

11021000

9976000

Current provision (benefit) for income taxes - federal

3228000

2884000

Current provision (benefit) for income taxes - state

466000

373000

Current provision (benefit) for income taxes - foreign

296000

258000

Total current provision (benefit) for income taxes

3990000

3515000

Deferred provision (benefit) for income taxes - federal

21000

127000

Deferred provision (benefit) for income taxes - state

10000

-11000

Deferred provision (benefit) for income taxes - foreign

-9000

Total deferred provision (benefit) for income taxes

22000

116000

Provision (benefit) for income taxes

4012000

3631000

Earnings from continuing operations

Net earnings

7009000

6345000

Cash Flow Statement

Report Date

01/31/2016

02/01/2015

Net earnings

7009000

6345000

Depreciation & amortization

1863000

1786000

Stock-based compensation expense

244000

225000

Loss (gain) on sales of investments

-144000

-323000

Goodwill impairment

Receivables, net

-181000

-81000

Merchandise inventories

-546000

-124000

Other current assets

-5000

-199000

Accounts payable & accrued expenses

888000

244000

Deferred revenue

109000

146000

Income taxes payable

154000

168000

Deferred income taxes

15000

159000

Other long-term liabilities

-152000

Other assets & liabilities

-33000

48000

Net cash flows from operating activities

9373000

8242000

Capital expenditures

-1503000

-1442000

Proceeds from sales of investments

144000

323000

Proceeds from sale of business, net

Payments for businesses acquired, net

-1666000

-200000

Proceeds from sales of property & equipment

43000

48000

Net cash flows from investing activities

-2982000

-1271000

Proceeds from (repayments of) short-term borrowings, net

60000

290000

Proceeds from long-term borrowings, net of discount

3991000

1981000

Repayments of long-term debt

-39000

Repurchases of common stock

-7000000

Proceeds from sales of common stock

228000

252000

Cash dividends paid to stockholders

-3031000

-2530000

Other financing activities

4000

-25000

Net cash flows from financing activities

-5787000

-7071000

Changes in cash & cash equivalents

604000

-100000

Effect of exchange rate changes on cash & cash equivalents

-111000

-106000

Cash & cash equivalents at beginning of year

1723000

1929000

Cash & cash equivalents at end of year

2216000

1723000

Cash payments made for interest, net of interest capitalized

874000

782000

Cash payments made for income taxes

3853000

3435000

Ratio Analysis

LIQUIDITY

Working Capital

Current Ratio

Quick Ratio

Inventory Turnover

Inventory Turnover in Days

Accounts Receivable Turnover

Accounts Receivables Turnover in Days

Accounts Payable Turnover

Accounts Payable Turnover in Days

PROFITABILITY

Total Asset Turnover

Fixed Asset Turnover

Return on Assets

Profit Margin

Gross Profit Margin

Return on Equity

Earnings per Share (EPS)

SOLVENCY

Debt Ratio

Debt to Equity Ratio

Times Interest Earned

ADDITIONAL INFORMATION

Weighted average shares outstanding - basic

1277000

1338000

Market Price per Share at Year End

125.76

104.42

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