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1.How has The Home Depot's profitability changed over recent years?On what measures are you basing your response?If you were one of the company's corporate managers, would you be satisfied with the trend in gross profit?The trend in operating income?Why or why not?

2.Are changes in the company's operating cash flows consistent with changes in its operating income?Does The Home Depot appear to be experiencing any sort of a cash flow problem?Why or why not?

3.Does the company's management appear to be managing debt properly?Is the company too reliant on long-term debt financing?Why or why not?What kinds of problems can this company (or any company) avoid by properly managing its debt?

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