2 Assume Best Buy reports the following fiscal year income statement Income Statement ($ millions) 2016 Revenue $30,848 Cost of goods sold 23,122 Gross profit 7,726 Selling, general and administrative expenses 6,082 Operating income 1,644 Net interest income 77 Earnings from continuing operations before income tax expense 1,721 Income tax expense 581 Net earnings $ 1,140 Forecast Best Buys fiscal year 2017 income statement assuming the following income statement relations cost of goods sold can be inferred as sales minus gross profit, and assume no change for all other accounts not listed below Revenue growth 12 4 Gross profit margin 25 0 Selling, general and administrative expense Revenue 19 7 Income tax expense Earnings from continuing operations before income tax 33 8 What is the forecasted net earnings for fiscal year ended 2017 a $1,268 million b $1,140 million c $1,301 million d $1,377 million 2 Assume Best Buy reports the following fiscal year income statement Income Statement ($ millions) Revenue Cost of goods sold Gross profit Selling, general and administrative expenses Operating income Net interest income Earnings from continuing operations before income tax expense Income tax expense Net earnings 2016 $30,848 23,122 7,726 6,082 1,644 77 1,721 581 $ 1,140 Forecast Best Buy's fiscal year 2017 income statement assuming the following income statement relations cost of goods sold can be inferred as sales minus gross profit, and assume no change for all other accounts not listed below Revenue growth Gross profit margin Selling, general and administrative expense Revenue Income tax expense Earnings from continuing operations before income tax 12 4 25 0 19 7 33 8 What is the forecasted net earnings for fiscal year ended 2017 a $1,268 million b $1,140 million C $1,301 million d $1,377 million

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2. Assume Best Buy reports the following fiscal year income statement. Income Statement ($ millions) 2016 Revenue $30,848 Cost of goods sold 23,122 Gross profit

2. Assume Best Buy reports the following fiscal year income statement.

Income Statement

($ millions) 2016

Revenue $30,848

Cost of goods sold 23,122

Gross profit 7,726

Selling, general and administrative expenses 6,082

Operating income 1,644

Net interest income 77

Earnings from continuing operations before income tax

expense

1,721

Income tax expense

581

Net earnings $ 1,140

Forecast Best Buys fiscal year 2017 income statement assuming the following income statement

relations; cost of goods sold can be inferred as sales minus gross profit, and assume no change for

all other accounts not listed below.

Revenue growth

12.4%

Gross profit margin

25.0%

Selling, general and administrative expense / Revenue

19.7%

Income tax expense/Earnings from continuing operations before income tax

33.8%

What is the forecasted net earnings for fiscal year ended 2017?

a. $1,268 million

b. $1,140 million

c. $1,301 million

d. $1,377 million image text in transcribed

2. Assume Best Buy reports the following fiscal year income statement. Income Statement ($ millions) Revenue Cost of goods sold Gross profit Selling, general and administrative expenses Operating income Net interest income Earnings from continuing operations before income tax expense Income tax expense Net earnings 2016 $30,848 23,122 7,726 6,082 1,644 77 1,721 581 $ 1,140 Forecast Best Buy's fiscal year 2017 income statement assuming the following income statement relations; cost of goods sold can be inferred as sales minus gross profit, and assume no change for all other accounts not listed below. Revenue growth Gross profit margin Selling, general and administrative expense / Revenue Income tax expense/Earnings from continuing operations before income tax 12.4% 25.0% 19.7% 33.8% What is the forecasted net earnings for fiscal year ended 2017? a. $1,268 million b. $1,140 million C. $1,301 million d. $1,377 million