Refer to Best Buy’s financial statements in Appendix A for the following questions.
Required
1. What amount of total liabilities does it report for each of the fiscal years ended February 25, 2006, and March 3, 2007?
2. What amount of total assets does it report for each of the fiscal years ended February 25, 2006, and March 3, 2007?
3. Compute its debt ratio for each of the fiscal years ended February 25, 2006, and March 3, 2007.
4. In which fiscal year did it employ more financial leverage (February 25, 2006, or March 3, 2007)? Explain.
Fast Forward
5. Access its financial statements (10-K report) for a fiscal year ending after March 3, 2007, from its Website (BestBuy.com) or the SEC’s EDGAR database (www.SEC.gov). Re-compute its debt ratio for any subsequent year’s data and compare it with the February 25, 2006, debt ratio.