Best Buy Company, Inc., a retailer of consumer electronics headquartered in Minnesota, recently reported the following partial

Question:

Best Buy Company, Inc., a retailer of consumer electronics headquartered in Minnesota, recently reported the following partial cash flow statement and income statement.

(Dollars in millions)

Year Ended

March 2, 2002

Cash flows from operating activities

Net income .................$ 570

Adjustments to reconcile net income to net cash:

Depreciation and amortization ........... 309

Increase in accounts receivable .......... (18)

Decrease in inventories .............. (330)

Increase in other assets .............. (39)

Increase in accounts payable ........... 529

Increase in accrued expenses and other ....... 557

Net cash provided by operating activities ....... $1,578

(Dollars in millions)

Year Ended

March 2, 2002

Revenues ...................$19,597

Cost of goods sold ................ 15,167

Gross profit ................... 4,430

Selling, general, and administrative expenses ..... 3,493

Interest expense, net .............. 1

Income before provision for income taxes ....... 936

Provision for income taxes ............. 366

Net income ................... $ 570

Required

Use the information from the financial statements to answer each of the following questions.

A. How much cash did Best Buy collect from customers in the fiscal year ended March 2,

2002?

B. How much cash did Best Buy pay out for inventory in the fiscal year ended March 2, 2002? The increase in Accounts Payable arose from purchases of inventory that had not yet been paid for.

C. How much cash did Best Buy pay out for selling, general, and administrative expenses in the fiscal year ended March 2, 2002? The changes in other assets and in accrued expenses and other are related to selling, general, and administrative expenses.

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