Financial Analysis of Home Depot 1Financial Analysis of Home DepotACC 497Financial Analysis of Home Depot 2The consolidated statement of earnings shows data about the company Home Depot's sales, operating expenses, gross profit, and net profit and it also shows the weighted and dilutedearnings per share. This statements also shows and tells the net sales of Home Deport and where it decreases in the 2008 from 2007 with $1673 and there is also a decrease in 2009 from 2008 in the amount of $6061. The cost of sales there is a decrease in the year of 2008 and in the year of 2009 from year 2007 and this is why the gross profit of Home depot has a decrease in these years. The operating expense of Home Depot show an increased in the yearof 2008 and 2009 and from the year of 2007 because the increase in depreciation expenses and selling and administration expenses. This is why the operating income has a decrease of $2883 in the year of 2009 from the year of 2008(The Home Depot, 2008)The interest expenses are increased in the year of 2008 from year 2007 in the amount of $305 , but shows a decrease in the year of 2009 with $72 from the year of from the year of 2008. Then there are other expenses in the amount of $163 and also in the ear of 2009 this is why the total of interest expenses that is an increased in the year of 2009 from the year of 2007 and 2008. The Home depot had a decrease in the amount of provision from the income tax in the year of 2009. Which is the main reasons for decline in sales, net earnings are decrease in the year of 2009. Earnings per share for each basic and diluted shares are $1.34 different in the year of 2009 which is a decline from the 2 year of 2007and 2008(The Home Depot, 2008). This statement is a very important statement due to many reasons, and these are as follow: It shows the important financial information of profits to all of the stakeholders of Home Depot, like the managers, investors and shareholders(Needles & Powers, 2007),It also provides the data of income and expenses of Home depot for a certain Financial Analysis of Home Depot 3time of period, it aids in describing the profit status of the company whether the company could make decisions when using the income statement like reducing several cost expenseslike inefficient operation and procedures that are enhancing the cost(Needles & Powers,2007). and Lastly, having the help of this statement allows the management of the company to make decisions of divest in the business unit if there was any loss.The balance sheet of Home Depot aids in the knowledge of assets, liabilities and stockholder's equity that the company has (Schroeder, Clark & Cathey, 2010). Now the first part of Home depot's balance sheets shows data in which the current and fixed assets of Home Depot's. The current assets shows cash amount, short-term investment, receivables, inventories and any other current assets. The total current asset are declining in the year of 2009 in the amount of $1312 and from the year of 2008. There is a different of property and equipment like land & building, furniture and construction in the part of Home Depot's fixed assets. Then, total amount of all the assets are declined in the year of 2009 and the same time net amount there is a decreased because of the increase in depreciation in the yearof 2009 from the year of 2008. The Goodwill of Home Depot is also decline in the year of 2009 with a $75 from the year of 2008(The Home Depot, 2008). In the second part of Home Depots balance sheet there are liabilities and stockholders' equity. Both has current and long-term liabilities in the amount of both are liabilities which is a decrease in the year of 2009 from the year of 2008. The paid-in capital of the company is $6048 in the year of 2009 and $5800 in the year of 2008. the Home Depot has retained earning in the balance sheet of the company which are an increased in the year of 2009 from the year of 2008. the total Financial Analysis of Home Depot 4stockholders' equity is an increased in the year of 2009 in the amount of $63 from the year of2008(The Home Depot, 2008). The balance sheet is a very important for any company because there are several reason why, like it shows the data of assets and liabilities that Home Depot owns out, it shows the data that is related with how the company is funded in the terms of long-term and short -term debt and the information on stockholders' equity (Schroeder, Clark & Cathey, 2010).According to Parrino & Kidwell, 2009 the statement of cash flow is another statement that is very important to any organization financial statement. It shows the organization financial performance in three different pars such as operation activities, investment activities, and financial activities. The cash flow statement of Home Depot is also in three parts. the cash flow from operation activities area show information about the net income of Home Depot which shows all adjustment in capital items. The cash flow from the operating activities is declining in the year of 2009 from the year of 2008 but shows the rate of a decrease of lower in the year of 2008 and 2007 (The Home Depot, 2008). The cash flow from the investing activities shows the Home Depot has capital expenditure sin the amount of $1847 in the dearof 2009 and shows purchases investment that are worth $168 which shows an reduction in the cash operations. The Home Depot's sales shows some investment that in the amount of $139 and shows the sale of property and equipment in the amount of $147 which generated cash for the organization. The organization used cash in the amount of $1729 in the year of 2009 for investment activities. However, the Home Depot organization generates some more money in the amount $4758 in the year of 2008 (The Home Depot , 2008). Lastly , the Financial Analysis of Home Depot 5cash flow from financing activities shows the debt and equity transactions of the organization. It shows that the organization has some long-term debt and they repurchasessome of its common stock. The organization also paid cash dividend out to the