I compared financial statements for two big-box home-improvement retailers, Lowes and Home Depot. Both companies used the indirect method to analyze their cash flow. Lowes’ cash flow was increased by net borrowing, additions to assets and funds from operations. Home Depot‘s cash flow was increased by adjustments to gross income, investments and operations. Lowes’ cash provided by operations was decreased by a decline in inventory and accounts payable. Home Depot’s cash was decreased by receivables, inventories and accounts payable. Overall, both companies experienced a cash decrease from operating activities.During the year, investing activities increased Lowes’ cash, while Home Depot’s cash was decreased over the same time period. Stock options were the major source of Lowes’ cash related to investing. Home Depot’s major use of cash for investing was other proceeds from the sale or issue of stock. Lowes’ financing activities increased cash during the year. Home Depot’s financing activities decreased cash during the same period. Both companies major source of
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