7. Assume the following are the fiscal year income statement and balance sheets of Best Buy, Co., Inc. 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 11 1,721 581 1.140 $ 2016 2015 $ 681 3,051 506 3,335 409 7,985 2,712 $ 354 2,994 375 2,851 329 6,903 2,464 513 40 148 226 $10.294 557 44 218 348 $11.864 2,824 Balance Sheet ($ millions) Assets Cash and cash equivalents Short-term investments Receivables Merchandise inventories Other current assets Total current assets Property, plant and equipment, net Goodwill Tradename Long-term investments Other assets Total assets Liabilities and Shareholders' equity Accounts payable Unredeemed gift card liabilities Accrued compensation and related expenses Accrued liabilities Accrued income taxes Current portion of long-term debt Total current liabilities Long-term liabilities Long-term debt Shareholders' equity Preferred stock Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income Total shareholders' equity Total liabilities and shareholders' equity Continued next page 410 3,234 469 354 878 703 418 6,056 373 178 234 844 575 72 4,959 358 528 643 4.304 261 5.257 $11.864 49 936 3.315 149 4.449 $10.294 Forecast Best Buy's fiscal year 2017 income statement, its 2017 fiscal year-end balance sheet, and its fiscal year 2017 statement of cash flows using the following relations (cost of goods sold can be inferred as revenue minus gross profit; and assume no change for all other accounts not listed below). 12.4% 25.0% 19.7% 18.5% Revenue growth.............................................................................. ....... Gross profit margin......... Selling, general and administrative expenses/Revenue................. Depreciation (inc. in SG&A expense)/Prior year net property and equipment.... Income tax expense/Earnings from continuing operations before income taxes.. Revenues/Year-end receivables............... Cost of goods sold/Year-end merchandise inventories......................... Cost of goods sold/Year-end accounts payable... Revenue/Year-end net property and equipment. Revenue/Year-end accrued compensation and related expenses and accrued liabilities... Accrued income taxes/Income tax expense... Dividends/Net earnings. Long-term debt in next fiscal year 33.8% 60.96 6.93 7.15 11.38 25.04 121.0% 13.2% $16 J .----------------------------------------------------- What is the forecasted 2017 net cash flow from investing activities? a. b. C. d. $ 505 million ($ 585) million (S 837) million $1,928 million