1. In a recent year’s financial statements, Home Depot reported the following results. Compute and interpret Home Depot’s return on assets (assume competitors average a 5% return on assets).
|
Sales |
$71,288 million |
|
Net income |
2,260 million |
|
Average total assets |
42,744 million |
2. Indicate in which financial statement each item would most likely appear: income statement (I), balance sheet (B), statement of owner’s equity (OE), or statement of cash flows (CF).
a. Assets
b. Revenues
c. Liabilities
d. Equipment
e. Withdrawals
f. Expenses
g. Total liabilities and equity
h. Cash from operating activities
i. Net decrease (or increase) in cash