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Home Depot Income Statement Paper

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CONSOLIDATED STATEMENT OF EARNINGS (INCOME STATEMENT)
The Home Depot, Inc. Income Statement can be found on the SEC 10-K Annual Report on page 33, where it reflects the financial results of how the company operating activity faired in the 52-53 week / fiscal period ending January 29,2017, for 2016, in generating revenue. Per The Home Depot Subsidiaries Consolidated Statement of Earnings (Income Statement) of 2016 fiscal year, the net sales of $94,595 (amount in USD millions). The net sales final number is resulting from the goods sold, services rendered, insurance, or any other earning process, which increases the net sale. Note that the net sales of The Home Depot increased from 6.42% to 6.42% (2016 fiscal year). …show more content…

Account Receivables utilize a third party service provider who directly extends credit to customers and manages The Home Depot credit card program. Deferred financing offered to the customers are included in the cost of sales.
The interchange fees charged to The Home Depot for the “customers’ use of the cards and any profit sharing with the third party service providers are included in Selling, General and Administrative expenses ("SG&A"). The sum of these three components is referred to by the Company as "the cost of credit" of the PLCC program.
In addition, certain subsidiaries of the Company, including Interline Brands, Inc. ("Interline"), extend credit directly to customers in the ordinary course of business. The receivables due from customers were $216 million and $253 million as of January 29, 2017, and January 31, 2016, respectively. The Company’s valuation reserve related to accounts receivable was not material to the Consolidated Financial Statements of the Company as of the end of fiscal 2016 or 2015” (SEC 10-K Annual Report. page 37). Home Depot’s receivable turnover deteriorated from 2015 to …show more content…

The Consolidated Balance Sheet helps the owners and investors understand the financial health, by tracking trends in the way the company can improve its financial standing. Per The Home Depot Consolidated Balance Sheet, The Home Depot “used capital and operating leases to finance a portion of their real estate, including their stores, distribution centers, and store support centers. The net present value of capital lease obligations is reflected in the Consolidated Balance Sheets in Long” (SEC 10-K Annual Report. page 24). The Home Depot Inc.’s current assets increased in 2015 ($16,993) to 2016 ($ 17,724), overall, reflecting an increase in the Total Asset from $42,549 to $ 42,966. Upon The Home Depot, receiving payment from customers before possession is taken of merchandise and/or service provided the amount is recorded as deferred revenue on the Consolidated Balance Sheets until the sale or service is completed, which may influence what is reflected. The Home Depot Total Current Liabilities for 2016 increased from $12,526 to $14,133. In addition, the Total non-current liabilities for 2016 also increased to $24,500, which may include any outstanding long-term loans. The Home Depot’s current ratio is 1.25:1 at the end of 2016 ($1.25 in current assets for every dollar of current

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