What is the nature of the opinion? You can copy the sentence from the auditor’s report which provides the auditor’s opinion. Compare and Contrast the information provided in the report.

Part 1 Financial Analysis Case relates to the textbook Module 1 including Appendix 1A and 1B, and Module 2.
Requirements: Upload your completed Part 1 template by clicking on the Part 1 Financial Analysis Case link. Enter you name on page 1 in area

provided above. Please save your file with the initial of your first name and your last name.
1.
URL of 10-K report State incorporated
The Home Depot, Inc. for fiscal year ending January 29, 2017
Lowe’s Companies, Inc. for fiscal year ending February 3, 2017

2.
The Home Depot, Inc. for fiscal year ending January 29, 2017 Lowe’s Companies, Inc. for fiscal year ending February 3, 2017
Summarize company’s business operations
Page number reference

3.
Total Assets Total Liabilities Total Equity Financial Statement Name as stated in the 10-K
The Home Depot, Inc.Numbers are stated in: Millions
Lowe’s Companies, Inc.
Numbers are stated in: Millions
Compare and Contrast the size of the net assets (same as book value or same as equity) of the two companies.

4.
Net Sales Cost of Sales Net Earnings Financial Statement Name
The Home Depot, Inc.
Numbers are stated in: Millions
Lowe’s Companies, Inc.
Numbers are stated in: Millions
Compare and Contrast the size of sales and net income of the two companies.

5.
Make sure you show computations Average assets-Use the total assets from the previous year plus the total assets for the current year and divide

by 2 Return on Assets=Net Earnings/Average Assets
In percentage terms to 2 decimal points. Profit Margin=Net Earning/Net sales
In percentage terms to 2 decimal points. Asset Turnover=net sales/average assets.
Show to 2 decimal points. Do not show in percentage terms.
The Home Depot, Inc.

Lowe’s Companies, Inc.
Compare and Contrast and comment upon the findings.

6.
Based onConsolidated Statements of Cash Flows for HD January 29, 2017and LOW February 3
Dollars In Millions The Home Depot, Inc.
Lowe’s Companies, Inc.

a. What was the dollar amount of the companies’ cash flow from operations?

b. Is operating cash flows smaller or larger than net income?

c. What are the two greatest adjustments made to net income to determine operating cash flows?

d. Determine the dollar amount and direction (cash source-positive or use-negative) of cash flows from investing activities.

e. Determine the dollar amount and direction (cash source-positive or use-negative) of cash flows from financing activities.
f. Did the company purchase new property and equipment (“capital expenditures”) during the year using cash? Which section of the statements of

cash flows did you find this information and how much did they buy using cash?
g. Did the company reduce any long-term debt? Which section of the statements of cash flows did you find this information and how much did they

pay cash?
h. Did the company purchase any of their stock using cash? Which section of the statements of cash flows did you look this information? How

much stock did they repurchase?
i. Did the company pay dividends? Which section of the statements of cash flows did you look this information? How much did they pay in

dividends?

7.
Make sure you are referencing the auditor’s report of the consolidated financial statements. The Home Depot, Inc. Inc. Lowe’s

Companies, Inc.
Who is the report addressed to?
Who are the auditors?
What is the nature of the opinion? You can copy the sentence from the auditor’s report which provides the auditor’s opinion.
Compare and Contrast the information provided in the report.

8.
The Home Depot, Inc. Inc. Lowe’s Companies, Inc.
Provide the page number(s) signed by the CEO, CFO, and the Board of Directors.
Explain what each company has provided to their shareholders per the Security Exchange Act of 1934 in Item 9a.

9.
The Home Depot, Inc. Inc. Lowe’s Companies, Inc.
Review the SWOT analysis for both companies and summarize the competitive landscape. Your summary must include specific information for each

company from the SWOT analysis posted at D&B Business Browser.

10.
The Home Depot, Inc. Inc. Lowe’s Companies, Inc.
What is the main purpose of this document?
List 5 areas that were referenced from each of the company’s corporate governance guidelines.

11.
Make sure you show computations Book value, which is total equity applicable to the stockholders of the company Market value-show your

calculation, which is Closing price times number of shares outstanding Market-to-Book ratio –show your calculation which is market value/book

value
The Home Depot, Inc. Inc.
Lowe’s Companies, Inc.
Comment:

Preparation instructions before starting the Financial Analysis Case: During this course, you will apply what you are learning in the area of

financial analysis to two publicly traded companies within the same industry. We will be analyzing the
10-K Reports of Home Depot Inc. (HD) and Lowe’s, Company Inc. (LOW). This financial analysis case is set up in four parts, which will be

submitted in parts throughout the term. I have adapted the ongoing project at the end of most of the modules in developing this financial

analysis project. You will need to upload each part of the case to the to the applicable partassignment link that is set up in the assignment

area—Financial Analysis Case Folder. The parts to the case will become available at least 2 weeks before they are due. You should not wait

until the last minute to complete the assigned part of the case analysis. Each part of the case will probably take between 10-15 hours to

complete, so make sure you use time management.
After you have completed this Financial Analysis Case you should have met the following objectives from the course:
1. Analyze financial statements to assess financial performance, risks, and opportunities.
2. Communicate financial performance using financial accounting terminology, concepts, reports, and financial statements.
3. Report financial information using computer technology (Excel).
4. Explain the importance of internal controls and security in the business environment.

You should review and read Module 1 including Appendix 1A and 1B, and Module 2. You will probably find the following supplemental information

helpful to read and view before starting the first part of the financial analysis case:
1. Read: Beginners’ guide to financial statements.
Citation: Beginners’ guide to financial statements. Retrieved from: https://www.sec.gov/investor/pubs/begfinstmtguide.htm
2. Read: How to read a 10-K.
Citation: How to read a 10-K. SEC website. Retrieved from: http://www.sec.gov/answers/reada10k.htm

3. Read: What is a 10-K and why should an investor read it?
Citation: Kennon, Joshua. (July 26, 2017). Retrieved from: http://beginnersinvest.about.com/od/annualreports/a/10k.htm

4. Read: definition of what is a publicly traded company.
Citation: Financial Dictionary Retrieved from: http://financial-dictionary.thefreedictionary.com/Publicly-Traded+Company

5. Read: over the Quick Edgar Tutorial so you have an understanding of how to use the Edgar system. There are other informative information

linked in the left column, so feel free to read more detailed information.
Citation: Quick Edgar Tutorial. SEC website. Retrieved from:https://www.sec.gov/edgar/quickedgar.htm
6. View: video of What is Financial Statement Analysis?
Citation: Routh, Brian. What is Financial Statement Analysis? Retrieved from: https://youtu.be/8DmChanpSmw?list=PL6597091D71EE7599 3

minutes.
7. Read: How to compare financial statements between businesses?
Citation: Bowlin, Kelly. How to compare financial statements between businesses? Retrieved from: http://smallbusiness.chron.com/compare-

financial-statements-between-businesses-24903.html
8. View: Ratio analysis-Introduction.
Citation: Tutor2u. Retrieved from: https://youtu.be/GoKIZqSFMIE 7 minutes
Part 1 Financial Analysis Case relates to the textbook Module 1 including Appendix 1A and 1B, and Module 2.
Requirements: Download the template I am providing for you to complete Part 1. Upload your completed Part 1 template by clicking on the Part 1

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