What you will learn to do: Illustrate proper reporting of current liabilities
As we discussed earlier, the reason current assets are reported on a classified balance sheet separately from noncurrent assets is so that analysts and investors can easily compare current assets to current liabilities.
| in millions, except per share data | February 2, 2020 | February 3, 2019 |
|---|---|---|
| Category, Assets | ||
| Subcategory, Current Assets: | ||
| Cash and cash equivalents | $ 2,133 | $ 1,778 |
| Receivables, net | 2,106 | 1,936 |
| Merchandise inventories | 14,531 | 13,925 | Other current assets | 1,040 | 890 |
| Total current assets | Single line 19,810Double line |
Single line 18,529Double line |
| Net property and equipment | 22,770 | 22,375 |
| Operating lease right-of-use assets | 5,595 | — |
| Goodwill | 2,254 | 2,252 |
| Other Assets | 807 | 847 |
| Total assets | Single line $ 51,236 Double line |
Single line $ 44,003 Double line |
| Category, Liabilities and Stockholders’ Equity | ||
| Subcategory, Current liabilities: | ||
| Short term debt | $ 974 | $ 1,339 |
| Accounts payable | 7,787 | 7,755 |
| Accured salaries and related expenses | 1,494 | 1,506 | Sales taxes payable | 605 | 656 | Deferred revenue | 2,116 | 1,782 | Income taxes payable | 55 | 11 | Current installments of long-term debt | 1,839 | 1,056 | Current operating lease liabilities | 828 | — | Other accrued expenses | 2,677 | 2,611 |
| Total current liabilities | Single line 18,375 |
Single line 16,716 |
| Single line | Single line | |
The next section of the balance sheet would be noncurrent liabilities:
| Total current liabilities | Single line 18,375 |
Single line 16,716 |
| Long-term debt, excluding current installments | Single line28,670 | Single line26,807 |
| Long-term operating lease liabilities | 5,066 | — |
| Deferred income taxes | 706 | 491 |
| Other long-term liabilities | 1,535 | 1,867 |
| Total liabilities | Single line 54,352 |
Single line 45,881 |
| Single line | Single line |
As you may have guessed, comparing total assets to total liabilities, owners’ equity for The Home Depot is actually a deficit. You’ll study the individual aspects of corporate equity in a later module, but for now, just notice that:
| in millions, except per share data | February 2, 2020 | February 3, 2019 |
|---|---|---|
| Common stock, par value $0.05; authorized 10,000 shares; issued: 1,786 shares at February 2, 2020 and 1,782 shares at February 3, 2019; Outstanding: 1,077 shares at February 2, 2020 and 1,105 shares at February 3, 2019 | 89 | 89 |
| Paid-in capital | 11,001 | 10,578 |
| Retained earnings | 51,729 | 46,423 |
| Accumulated other comprehensive loss | (739) | (772) |
| Treasury stock, at cost, 709 shares at February 2, 2020 and 677 shares at February 3,2019 | (65,196) | (58,196) |
| Total stockholders’ (deficit) equity | Single line (3,116) |
Single line (1,878) |
| Total liabilities and stockholders’ equity | Single line $ 51,236 Double line |
Single line $ 44,003 Double line |
| Note See accompanying notes to consolidated financial statements | ||
Notice that total liabilities (current and noncurrent) and owners’ equity (called stockholders’ equity for a corporation) of $51.236 billion is equal to total assets of $51.236 billion.
