Accounting Project- Financial

a corporation is assigned to you (in this case is BEST BUY), search for it atwww.SEC.gov(Links to an external site.)

website.Once you locate the company, find the 10k, and click on the first file. which should be the largest file.The template is on the bottom

3) Search for the balance sheet and recall the page number it's located in using "Control F" button.Note whether the company reports data in Thousands or Millions. The template on the bottom has it.

Name of FirmBest Buy________________________

Fiscal YearFeb 2, 2019toFeb 1, 2020

Link to 10khttps://www.sec.gov/Archives/edgar/data/764478/000076447820000017/bby-20200201x10k.htm

Page 40, Data in Millions

1. Determine the amounts your firm reports for total assets, total liabilities, and total stockholders' equity in the balance sheet for the most recent year. Verify that the basic accounting equation balances.

Assets 15,591

Liabilities12,112

StockholdersEquity3,479

2. Does your company refer to the income statement using another name?If so, what is it?

Consolidated Statements of Earnings

3. Determine the amounts that your firm reports for net sales and net income in its income statement for the most recent year.

4.Who is the company's auditor? What does the report indicate about the amounts reported in the company's financial statements?(See the Report of Independent Registered Public Accounting Firm.)

5. Is the size of your firm increasing? Determine your answer by calculating the percentage change in total assets and percentage change in net sales for the most recent year.(Calculation = (currentyr-previousyr)/previous yr.)

6. Is the profitability of your firm increasing? Determine your answer by calculating the percentage change in net income for the most recent year.(Calculation = (currentyr-previousyr)/previous yr.)

7. For the most recent year, what amount does your company report for current assets? What assets are listed as current assets? What is the ratio of current assets to total assets(current assets/ total assets)?

8. For the most recent year, what amount does your company report for current liabilities? What liabilities are listed as current liabilities? What is the ratio of current liabilities to total liabilities(current liabilities/total liabilities)?

9. What does the Report of Independent Registered Public Accounting Firm indicate about yourcompany'sinternal controls?

10. In the summary of significant accounting policies, how does your company define cash equivalents?

11. What is the amount of cash reported in the two most recent years? By how much has cash increased/decreased?

12. List your firm's net cash flows from operating activities, investing activities, and financing activities in its statement of cash flows for the most recent year. What are total cash flows for the year?

13. In the summary of significant accounting policies, what procedure does your organization use to account for inventory(FIFO, LIFO,etc)?

14. For the most recent year, what is the amount of inventory in the balance sheet? What does this amount represent?

15. Does your company refer to its cost of goods sold using a different name? If so, what is it?

16. For the most recent year, what is the amount of cost of goods sold in the income statement? What does this amount represent?

17. Determine whether the trend in net sales/revenueshas been increasing or decreasing for the past three years.

18. Does your organization report an allowance for uncollectible accounts in the balance sheet? If so, how much is reported for the most recent year?

19. Locate the section on property and equipment. What depreciation method does your firm use?

20. What is the cost of property and equipment? What is the trend in property and equipment for the past two years?

21.Calculate the acid-test (quick) ratio for the past two years. Did the acid-test ratio improve or weaken in the more recent year?

22. Review the balance sheet and other important financial statements. Based on this information, how would you rate the bankruptcy risk of your company?

23.What is the par value per share for the common stock?

24.How many common shares were issued at the end of the most recent year?

25.Did the company have any treasury stock?

26.Has your firm issued any bonds over the last two years(Use the footnote on Debt)?