A recent annual report issued by Best Buy revealed the following data.

The company’s income statement reported total annual revenue of $42,151 million and net income for the year of $1,000 million. 

Instructions:
a. Evaluate Best Buy’s profitability by computing its net income percentage and its return on equity for the year. 

b. Evaluate Best Buy’s liquidity by computing its working capital and its current ratio at the beginning of the year and at the end of the year. 

c. Does Best Buy appear to be both profitable and liquid? Explain.

Transcribed Image Text:

Current assets.. Current liabilities.. Stockholders' equity.... End of Year $9,829 million $7,817 million $3,612 million Beginning of Year $10,516 million $7,122 million $4,709 million