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.

THE HOME DEPOT INC.
CONSOLIDATED BALANCE SHEET

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
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
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:

THE HOME DEPOT INC.
CONSOLIDATED BALANCE SHEET

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.