6th Edition

ISBN: 9781259864230

Author: PHILLIPS, Fred, Libby, Robert, Patricia A.

Publisher: Mcgraw-hill Education,

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Textbook Question

Chapter 1, Problem 2SDC

Comparing Financial Information

Refer to the financial statements of The Home Depot in Appendix A and Lowe’s in Appendix B at the end of this book. (Note: Fiscal 2106 for The Home Depot runs from February 1, 2016, to January 29, 2017. Fiscal 2016 for Lowe’s runs from January 30, 2016, to February 3, 2017. See S1-1 for further explanation of these fiscal periods.)

Required:

1. Was Lowe’s net income for the year ended February 3, 2017, greater (or less) than The Home Depot’s?
2. Was Lowe’s sales revenue for the year ended February 3, 2017, greater (or less) than The Home Depot’s?
3. Did Lowe’s have more (or less) inventory than The Home Depot at the end of “Fiscal 2016”?
4. Did Lowe’s have more (or less) cash than The Home Depot at the end of “Fiscal 2016”?
5. What reasons do The Home Depot and Lowe’s give for choosing such odd dates to end their fiscal years?
6. How many weeks are included in “Fiscal 2016” for The Home Depot versus Lowe’s? If the companies were identical in all other respects, which company would you expect to report a larger amount of sales revenue?

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Chapter 1, Problem 1SDC

Chapter 1, Problem 5SDC

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Solution Summary: The author states whether the net income of Company L is greater or less than Company THD for the year ended February 3, 2017.

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