Refer to the financial statements of Best Buy in Appendix A to answer the following.

1. Compute times interest earned for the fiscal years ended 2009, 2008, and 2007. Comment on Best Buy’s ability to cover its interest expense for this period. Assume an industry average of 18.1.

2. Best Buy’s current liabilities include “Unredeemed gift card liabilities.” Explain how this liability is created and how Best Buy satisfies this liability.

3. Does Best Buy have any commitments or contingencies? Briefly explain them.