The following financial statement excerpt is taken from the 2012 Annual Report (for the fiscal year ended February 3, 2013) for The Home Depot, Inc.:

1. The Cost of Sales amount on The Home Depot, Inc., consolidated statements of earnings represents the net cost of the goods that were sold for the period. For 2013, what percentage of net sales was the cost of sales? For fiscal 2012?
2. What factors might affect a merchandising company's cost of sales from one period to
another? Analyze Online: On The Home Depot, Inc., website (www.homedepot.com), locate the Investor Relations' section.
3. Review the consolidated statements of operations found in the current year's annual report.
4. What amount is reported for cost of sales?
5. What amount is reported for net sales?

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Consolidated Statements of Earnings For the year ended February 3, 2013 January 29, 2012 (In millions) Wet Sales Cost of Sales Gross Profit S 74,754 48,912 25, 842 70,395 46,133 S24,262