Native English speakers, could you please help me with these issues?

1. Please, consider the folowing sentence: "I set the stereo on the floor." Does this mean that the person put the audio speakers on the floor? 2. Please, consider the following sentence: "All the secret egents were young, and dressed like college kids, except that in their backpacks, rather than books and a CD or MP3 player, they were packing HEAT." In this context, what does 'heat' mean?
Answers

Ben

1. It depends on what "stereo" means. Typically it means more than just the speakers. 2. Heat means guns.