Could you please help me answer a couple of accounting questions?
Could you please help me answer a couple of accounting questions?
Based on the following financial statements,
http://highered.mcgraw-hill.com/sites/0072996501/student_view0/appendix_a_-_home_depot_annual_report.html
could you please help me answer these questions?
1. What were the diluted earnings per share for year 2003?
2. What is the company policy regarding goodwill?
Please try to explain how you figured out the answers too if you could.
Answers:
Chosen Answer
Sandy: 1. What were the diluted earnings per share for year 2003? For fiscal year ended Feb 1, 2004, diluted earnings per share = $1.88 (look at the bottom of page 4 of 16) 2. What is the company policy regarding goodwill? Goodwill represents the excess of purchase price over fair value of net assets acquired. The Company does not amortize goodwill, but does assess the recoverability of goodwill in the third quarter of each year by determining whether the fair value of each reporting unit supports its carrying value. The fair values of the Company's identified reporting units were estimated using the expected present value of discounted cash flows. The Company recorded no impairment charges for fiscal 2005, 2004 or 2003. (look at page 12 of 16)
2009-06-23 06:19:33
Sandy: 1. What were the diluted earnings per share for year 2003? For fiscal year ended Feb 1, 2004, diluted earnings per share = $1.88 (look at the bottom of page 4 of 16) 2. What is the company policy regarding goodwill? Goodwill represents the excess of purchase price over fair value of net assets acquired. The Company does not amortize goodwill, but does assess the recoverability of goodwill in the third quarter of each year by determining whether the fair value of each reporting unit supports its carrying value. The fair values of the Company's identified reporting units were estimated using the expected present value of discounted cash flows. The Company recorded no impairment charges for fiscal 2005, 2004 or 2003. (look at page 12 of 16)
2009-06-23 06:19:33