Company's Product or Service? The Term Paper

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Be sure to include a description of all four basic financial statements.

The Home Depot provides four basic financial statements:

1) CONSOLIDATED STATEMENT of EARNINGS (indicates how revenue is transformed into net income to show if the company made or lost money during the period being reported)

2) CONSOLIDATED BALANCE SHEET (a summary of the value of all assets, liabilities and ownership equity on a specific date)

3) CONSOLIDATED STATEMENT of STOCKHOLDERS' EQUITY and COMPREHENSIVE INCOME (summarize the changes in the components of stockholders' equity for a period of time)

4) CONSOLIDATED STATEMENT of CASH FLOWS (shows a company's incoming and outgoing money (sources and uses of cash) during a time period)

The only footnote explains that Fiscal years ended January 28, 2007, January 29, 2006 and January 30, 2005 include 52 weeks.

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However, there is a summary of significant accounting policies included as a supplement that includes: Business, Consolidation and Presentation, Fiscal Year, Use of Estimates, Fair Value of Financial Instruments, Cash Equivalents, Short-Term Investments, Accounts Receivable, Merchandise Inventories, Income Taxes, Depreciation and Amortization, Capitalized Software Costs, Revenues, Services Revenue, Self-Insurance, Prepaid Advertising, Vendor Allowances, Cost of Sales, Goodwill and Other Intangible Assets, Impairment of Long-Lived Assets, Stock-Based Compensation, Derivatives, Comprehensive….....

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