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1. Calculate the percentage change in the current ratio for the years 2005 and 2006 Current ratio = Current assets/current liabilities 2006 = 15,346/12,901 = 1.1895 2005 = 14,273/10,455 = 1.3652 So percentage change is (1.1895 - 1.3652)/1.3652 = -12.87% or a drop of 12.87% (figures obtained from page 5 of 16) 2. What is the Company policy for the sale of and recognition of the revenue on gift cards? The Company also records Deferred Revenue for the sale of gift cards and recognizes this revenue upon the redemption of gift cards in Net Sales. Gift card breakage income is recognized based upon historical redemption patterns and represents the balance of gift cards for which the Company believes the likelihood of redemption by the customer is remote. (bottom of page 10 of 16) 3. What is the average square foot size of the Home Depot stores? 105,000 sq. ft. (page 8 and 15 of 16) Approximately how many different kinds of building materials and home improvement supplies does each store stock? The stores stock approximately 35,000 to 45,000 different kinds of building materials, home improvement supplies and lawn and garden products. (note 1 on page 8 of 16) How many stores was the company operating at the end of fiscal 2005? 2,042 stores (page 15 of 16)

by Sandy

5 months ago

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