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

Analyze:
1. What percentage of total assets is made up of cash and cash equivalents at January 31, 2016?
2. Cash receipt and cash payment transactions affect the total value of a company's assets. By what amount did the category "Cash and cash equivalents" change from February 1, 2015, to January 31, 2016?
3. If accountants at The Home Depot, Inc., failed to record cash receipts of $150,000 on January
31, 2016, what impact would this error have on the balance sheet category "Cash and cash equivalents"?

Transcribed Image Text:

As of Jan. 31, 2016 Feb. 1, 2015 Miions except for numbers of shares and per-share dota ASSETS Current Assets. Cash and cash equvaients S2,216 $1,723 Totai assets $39,946 Cash and Cash Equivalents: Al highly igld Investments purchased with onignal maturides of three months or less are considered to be cash equvalents.