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Financial Statement Paper Part I Home Depot

In: Business and Management

Submitted By armandag
Words 895
Pages 4
Financial Statement Paper Part I
Armanda Gamboa
ACC/497
May 25, 2015
Silvana Moffitt

Financial Statement Paper Part I
Upon making business decisions there are three types of financial statements that should be looked at and reviewed prior to making any decision. The three statements are the consolidated statement of earnings (income statement), balance sheet, and the statement of cash flows. The income statement will prove the company’s profitability, the balance sheet will provide a look at the company’s financial stand, and the statement of cash flow will tell where the cash came from and where the cash is going.
Home Depot Inc. is a large home improvement retailer that has over 2,200 stores worldwide and has been in business since 1978. Looking at the financial statements for the year 2008 means there are several previous years that can be compared these statements. This will allow anyone who is curious about the financial situation of Home Depot to compare statements to previous years to determine the growth and success of the business.
While reviewing the consolidated financial statement for Home Depot Inc year 2008 it proved that due to the decline in the economy there was a decline in revenue for them as well compared to their 2007 statement. The difference in net earnings from 2007 to 2008 are proven to be extremely large at 50% decline. On the 2007 income statement net earnings were at $4.4 billion with diluted earnings per share of $2.37 which is now compared to the 2008 earnings of only $2.3 billion and diluted earnings per share of $1.34. This is a significant decrease from one year to the next. At this time the economy was is in a recession which effected all businesses big or small. Had there not been such a economic downfall changes like these in financial statements would raise great question of whether or not the company is actually

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