Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Analysis and Interpretation of Profitability Balance sheets and income statements for Best Buy Co., Inc. follow. Consolidated Statements of Earnings For Fiscal Years Ended ($
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 26, 2011 | February 27, 2010 | February 28, 2009 |
Revenue | $ 50,272 | $ 49,694 | $ 45,015 |
Cost of goods sold | 37,611 | 37,534 | 34,017 |
Restructuring charges - cost of goods sold | 24 | -- | -- |
Gross Profit | 12,637 | 12,160 | 10,998 |
Selling, general and administrative expenses | 10,325 | 9,873 | 8,984 |
Restructuring charges | 198 | 52 | 78 |
Goodwill and tradename impairment | -- | -- | 66 |
Operating income | 2,114 | 2,235 | 1,870 |
Other income (expense) | |||
Investment income and other | 51 | 54 | 35 |
Investment impairment | -- | -- | (111) |
Interest expense | (87) | (94) | (94) |
Earnings before income tax expense and equity in income of affiliates | 2,078 | 2,195 | 1,700 |
Income tax expense | 714 | 802 | 674 |
Equity in income of affiliates | 2 | 1 | 7 |
Net earnings including noncontrolling interest | 1,366 | 1,394 | 1,033 |
Net income attributable to noncontrolling interest | (89) | (77) | (30) |
Net income attributable to Best Buy Co., Inc. | $ 1,277 | $ 1,317 | $ 1,003 |
Consolidated Balance Sheets | ||
---|---|---|
($ millions, except footnotes) | February 26, 2011 | February 27, 2010 |
Assets | ||
Current assets | ||
Cash and cash equivalents | $ 1,103 | $ 1,826 |
Short-term investments | 22 | 90 |
Receivables | 2,348 | 2,020 |
Merchandise inventories | 5,897 | 5,486 |
Other current assets | 1,103 | 1,144 |
Total current assets | 10,473 | 10,566 |
Property and equipment | ||
Land and buildings | 766 | 757 |
Leasehold improvements | 2,318 | 2,154 |
Fixtures and equipment | 4,701 | 4,447 |
Property under capital lease | 120 | 95 |
7,905 | 7,453 | |
Less: Accumulated depreciation | 4,082 | 3,383 |
Property and equipment, net | 3,823 | 4,070 |
Goodwill | 2,454 | 2,452 |
Tradenames, net | 133 | 159 |
Customer relationships, net | 203 | 279 |
Equity and other investments | 328 | 324 |
Other noncurrent assets | 435 | 452 |
Total assets | $ 17,849 | $ 18,302 |
Liabilities and equity | ||
Current liabilities | ||
Accounts payable | $ 4,894 | $ 5,276 |
Unredeemed gift card liabilities | 474 | 463 |
Accrued compensation and related expenses | 570 | 544 |
Accrued liabilities | 1,471 | 1,681 |
Accrued income taxes | 256 | 316 |
Short-term debt | 557 | 663 |
Current portion of long-term debt | 441 | 35 |
Total current liabilities | 8,663 | 8,978 |
Long-term liabilities | 1,183 | 1,256 |
Long-term debt | 711 | 1,104 |
Equity | ||
Best Buy Co., Inc. Shareholders' equity | ||
Preferred stock, $1.00 par value | -- | -- |
Common stock, $0.10 par value | 39 | 42 |
Additional paid-in capital | 18 | 441 |
Retained earnings | 6,372 | 5,797 |
Accumulated other comprehensive income (loss) | 173 | 40 |
Total Best Buy Co., Inc. shareholders' equity | 6,602 | 6,320 |
Noncontrolling interest | 690 | 644 |
Total equity | 7,292 | 6,964 |
Total liabilities and equity | $ 17,849 | $ 18,302 |
1. Compute Best Buy's RNOA, net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2011. (Do not round until final answer. Round two decimal places. Do not use NOPM x NOAT to calculate RNOA.)
2011 RNOA = Answer%
2011 NOPM = Answer%
2011 NOAT = Answer
2. Compute return on equity (ROE) for 2011. (Round your answers to two decimal places. Do not round until your final answer.)
2011 ROE = Answer%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started