Problem - Given
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The Home Depot, Inc. Consolidated Statements of Cash Flows
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*Fiscal Year Ended*
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31-Jan-10
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1-Feb-09
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3-Feb-08
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*amounts in millions*
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CASH FLOWS FROM OPERATING ACTIVITIES:
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|
|
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Net Earnings
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$2,661
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$2,260
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$4,395
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Reconciliation of Net Earnings to Cash Provided by Operating Activites:
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|
|
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Depreciation and Amortization
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1,806
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1,902
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1,906
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Impairment Related to Rationalization Charges
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-
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580
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-
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Impairment of Investement
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163
|
163
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-
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Stock-based Compensation Expense
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201
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176
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207
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Changes in Assets and Liabilities, net of the effects of acquisitions and disposition:
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|
|
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(Increase) Decrease in Receivables, net
|
-23
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121
|
116
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Decrease (Increase) in Merchandise Inventories
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625
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743
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-491
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Decrease (Increase) in Other Current Assets
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4
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-7
|
109
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Increase (Decrease) in Accounts Payable and Accrued Expenses
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59
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-646
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-465
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Decrease in Deferred Revenue
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-21
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-292
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-159
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(Decrease) Increase in Income Taxes Payable
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-174
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262
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-
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Decrease in Deferred Income Taxes
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-227
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-282
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-348
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(Decrease) Increase in Long-Term Liabilities
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-19
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306
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186
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Other
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70
|
242
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271
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Net Cash Provided by Operating Activities
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5,125
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5,528
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5,727
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CASH FLOWS FROM INVESTING ACTIVITIES:
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|
|
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Capitial Expenditures, net of $10, $37 and $19 of non-cash capitial expenditures
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|
|
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in fiscal 2009, 2008 and 2007, respectively
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-966
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-1,847
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-3,558
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Proceeds from Sale of Business, net
|
-
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-
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8,337
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Payments for Business Acquired, net
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-
|
-
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-13
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Proceeds from Sales of Property and Equipment
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178
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147
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318
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Purchases of Investments
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-
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-168
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-11,225
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Proceeds from Sales and Maturities of Investments
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33
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139
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10,899
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Net Cash (Used in) Provided by Investing Activities
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-755
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-1,729
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4,758
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CASH FLOWS FROM FINANCING ACTIVITIES:
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|
|
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(Repayments of) Proceeds from short-term borrowing, net
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-
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-1,732
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1,734
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Repaymens of Long-term Debt
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-1,774
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-313
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-20
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Repurchases of Common Stock
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-213
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-70
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-10,815
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Proceeds from Sales of Common Stock
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73
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84
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276
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Cash Dividends Paid to Stockholders
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-1,525
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-1,521
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-1,709
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Other Financing Activities
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-64
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-128
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-105
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Net Cash Used in Financing Activities
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-3,503
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-3,680
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-10,639
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Increase (Decreases) in Cash and Cash Equivalents
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867
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119
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-154
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Effect of Exchange Rate changes on Cash and Cash equivalents
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35
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-45
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-1
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Cash and Cash equivalents at Beginning of Year
|
519
|
445
|
600
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Cash and Cash equivalents at End of Year
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1,421
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519
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445
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SUPPLEMENTAL DISCLOSURE OF CASH PAYMENTS MADE FOR:
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Interest, net of interest capitalized
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664
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622
|
672
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Income Taxes
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2,082
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1,265
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2,524
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Required - Cash flows from both investing and financing activities have been mostly negative for all three years presented. Considering Home Depots overall cash flows, including its cash flows from operations, would you say that this leads to a negative interpretation of Home Depot's cash position at January 31, 2010? Why or why not?