Analysis and Interpretation of Profitability Balance sheets and income statements for Best Buy Co., Inc. follow.

Consolidated Statements of Earnings
For Fiscal Years Ended ($ millions)	February 27, 2010	February 28, 2009	March 1, 2008
Revenue	$ 49,694	$ 45,015	$ 40,023
Cost of goods sold	37,534	34,017	30,477
Restructuring charges - cost of goods sold	--	--	--
Gross Profit	12,160	10,998	9,546
Selling, general and administrative expenses	9,873	8,984	7,385
Restructuring charges	52	78	--
Goodwill and tradename impairment	--	66	--
Operating income	2,235	1,870	2,161
Other income (expense)
Investment income and other	54	35	129
Investment impairment	--	(111)	--
Interest expense	(94)	(94)	(62)
Earnings before income tax expense and equity in income of affiliates	2,195	1,700	2,228
Income tax expense	802	674	815
Equity in income of affiliates	1	7	(3)
Net earnings including noncontrolling interest	1,394	1,033	1,410
Net income attributable to noncontrolling interest	(77)	(30)	(3)
Net income attributable to Best Buy Co., Inc.	$ 1,317	$ 1,003	$ 1,407

Consolidated Balance Sheets
($ millions, except footnotes)	February 27, 2010	February 28, 2009
Assets
Current assets
Cash and cash equivalents	$ 1,826	$ 498
Short-term investments	90	11
Receivables	2,020	1,868
Merchandise inventories	5,486	4,753
Other current assets	1,144	1,062
Total current assets	10,566	8,192
Property and equipment
Land and buildings	757	755
Leasehold improvements	2,154	2,013
Fixtures and equipment	4,447	4,060
Property under capital lease	95	112
	7,453	6,940
Less: Accumulated depreciation	3,383	2,766
Property and equipment, net	4,070	4,174
Goodwill	2,452	2,203
Tradenames, net	159	173
Customer relationships, net	279	322
Equity and other investments	324	395
Other noncurrent assets	452	367
Total assets	$ 18,302	$ 15,826

Liabilities and equity

Current liabilities

Accounts payable

$ 5,276

$ 4,997

Unredeemed gift card liabilities

463

479

Accrued compensation and related expenses

544

459

Accrued liabilities

1,681

1,382

Accrued income taxes

316

281

Short-term debt

663

783

Current portion of long-term debt

35

54

Total current liabilities

8,978

8,435

Long-term liabilities

1,256

1,109

Long-term debt

1,104

1,126

Equity

Best Buy Co., Inc. Shareholders' equity

Preferred stock, $1.00 par value

--

--

Common stock, $0.10 par value

42

41

Additional paid-in capital

441

205

Retained earnings

5,797

4,714

Accumulated other comprehensive income (loss)

40

(317)

Total Best Buy Co., Inc. shareholders' equity

6,320

4,643

Noncontrolling interest

644

513

Total equity

6,964

5,156

Total liabilities and equity

$ 18,302

$ 15,826

NOTE: Use net income attributable to controlling interests in your computations, when applicable.

a. Compute ROE for 2010.

Do not round until your final answer. Round your answer to two decimal places.

ROE =Answer%

b. Confirm that ROE equals ROE computed using the component measures for profit margin, asset turnover, and financial leverage using: ROE = PM * AT * FL.

Compute the components of ROE.

Do not round until your final answer. Round answers to two decimal places. PM =Answer% AT =Answer FL =Answer c. Compute adjusted ROA. Assume a tax rate of: 37.0%.

Round your answer to two decimal places. Adjusted ROA =Answer%