Refer to the financial statements of Best Buy in Appendix A to answer the following. 1. What
Question:
Refer to the financial statements of Best Buy in Appendix A to answer the following.
1. What percent of the original cost of Best Buy’s property and equipment remains to be depreciated as of February 28, 2009, and at March 1, 2008? Assume these assets have no salvage value.
2. Over what length(s) of time is Best Buy depreciating its major categories of property and equipment?
3. What is the change in total property and equipment (before accumulated depreciation) for the year ended February 28, 2009? What is the amount of cash provided (used) by investing activities for property and equipment for the year ended February 28, 2009? What is one possible explanation for the difference between these two amounts?
4. Compute its total asset turnover for the year ended February 28, 2009, and the year ended March 1, 2008. Assume total assets at March 3, 2007, are $13,570 ($ millions).
Financial StatementsFinancial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important... Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
Step by Step Answer:
1 The percent of original cost remaining to be depreciated is computed by taking the ratio of the bo...View the full answer
