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

Required

1. What payroll-related liability does Best Buy report at February 26, 2005?

2. In what income statement accounts does Best Buy report its payroll and benefit costs?

Fast Forward

3. Access Best Buy’s financial statements for fiscal years ending after February 26, 2005, at its Website (www.BestBuy.com) or the SEC’s EDGAR database (www.sEc.gov). What payroll-related liability does Best Buy report for years ending after February 26, 2005?

 Appendix A:

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Five-Year Financial Highlights 3 in millions, except per share amounts Fiscal Year Consolidated Statements of Earnings Data Revenue Operating income Earnings from continuing operations Loss from discontinued operations, net of 2005 2004 2003 2002 2001 $27,433 $24,548 $20,943 1,442 1,304 1,010 $17,711 908 $15,189 611 934 800 622 570 401 tax (29) (441) (5) Gain (loss) on disposal of discontinued operations, net of tax 50 (66) Cumulative effect of change in accounting principles, net of tax (82) Net earnings 984 705 99 570 396 Per Share Data Continuing operations $2.79 $2.41 $1.90 $1.77 $1.26 Discontinued operations (0.09) (1.34) (0.02) Gain (loss) on disposal of discontinued operations 0.15 (0.20) Cumulative effect of accounting changes (0.25) Net earnings 2.94 2.13 0.31 1.77 TIRI 1.24 Cash dividends declared and paid 0.42 0.40 Common stock price: High 62.20 62.70 53.75 51.47 59.25 Low 43.87 25.55 16.99 22.42 14.00 Operating Statistics Comparable store sales change 4.3% 7.1% 2.4% 1.9% 4.9% Gross profit rate 23.7% 23.9% 23.6% 20.0% 18.5% Selling, general and administrative expense rate 18.4% 18.6% 18.8% 14.9% 14.5% Operating income rate 5.3% 5.3% 4.8% 5.1% 4.0% Year-End Data Current ratio 1.4 1.3 1.3 1.2 Total assets $10,294 $8,652 $7,694 $7,367 1.31 $4,840 Long-term debt, including current portion 600 850 834 820 Total shareholders' equity 4,449 3,422 2,730 2,521 296 1,822 Number of stores U.S. Best Buy stores 668 608 548 481 419 Magnolia Audio Video stores 20 22 19 13 13 International stores 144 127 112 95 Total retail square footage (000s) U.S. Best Buy stores Magnolia Audio Video stores International stores 28,260 194 3,139 26,421 218 2,800 24,243 189 2,375 21,599 133 1,923 19,010 133