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The Home Depot 2008 Annual Report Dear Shareholders: In 2008, our retail sales declined by 7.8 percent, with comp sales down 8.7 percent. Our...

Individual Financial Statements Paper Part 1

Resources: Appendix A: The Home Depot, Inc. Annual Report in Fundamentals of Financial Accounting
Write a 1,050- to 1,750-word paper in which you answer the following questions:

• What does the Consolidated Statements of Earnings—the income statement—tell you about the company? Why is this statement important? What business decisions could be made using the income statement?

• What does the balance sheet tell you about the company? Why is the balance sheet important? What business decisions could be made using the balance sheet?

• What does the statement of cash flows tell you about the company? What business decisions could be made using the statement of cash flows?

• What information is provided in the statements that will assist you in making these business decisions? What information is not provided that could assist in managerial decision making?

Format your paper consistent with APA guidelines.

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Dear Shareholders: In 2008, our retail sales declined by 7.8 percent, with comp sales down 8.7 percent. Our adjusted earnings per share from continuing operations declined 22 percent. In ordinary times, these would be very disappointing results. But 2008 was not an ordinary year. Despite the difficult economic environment, we continued to improve our retail business, through investing in our associates and our stores, rebuilding our supply chain and improving customer service. We also made several strategic decisions to optimize our capital allocation, concentrating our efforts on our core business. In the first quarter, we closed 15 underperforming stores and reduced our pipeline of new stores by 50. In the third quarter, we renegotiated our private label credit card agreement, capping our cost of private label credit. In the fourth quarter, we announced our decision to exit EXPO and related businesses. These actions will make the Company stronger. On the financial side, we ended the year with a solid operating profit and $41 billion in assets. We generated cash from the business of approximately $5.5 billion, which allowed us to invest in the business where necessary and reduce our debt obligations while maintaining a healthy dividend. On the operational side, we implemented an “Aprons on the Floor” initiative, which deployed over $200 million in annualized savings onto the floor of the stores for customer service. Our customer service levels, as measured by our Voice of Customer surveys and other external sources, continue to improve. We launched our “New Lower Price” campaign in the fall and have been very pleased with the customer response to this program. More than ever, our customers expect great value and exciting products in our stores, and we are committed to providing for these expectations. We started the roll-out of our enhanced supply chain. At the end of January, we opened our fifth Rapid Deployment Center (RDC), and RDCs now serve approximately 500 of our U.S. stores. Our goal is to have approximately 20 RDCs in place by the end of 2010, serving all of our U.S. stores.
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Introduction-About the company
The Home Depot Company is an American retailer of home improvement and
construction products and services. It is listed under the New York stock exchange under the...

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