Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Best Buy Company, Incorporated, is a leading retailer specializing in consumer electronics. A condensed income statement and balance sheet for the fiscal year ended

image text in transcribed

Best Buy Company, Incorporated, is a leading retailer specializing in consumer electronics. A condensed income statement and balance sheet for the fiscal year ended February 1, 2020, are shown below. Current assets: Best Buy Company, Incorporated Balance Sheet At February 1, 2020 ($ in millions) Assets Cash and cash equivalents Accounts receivable (net) Inventory Other current assets Total current assets Long-term assets Total assets Liabilities and Shareholders' Equity Current liabilities: $ 2,229 1,149 5,174 305 8,857 6,734 $ 15,591 Accounts payable Other current liabilities Total current liabilities Long-term liabilities Shareholders' equity Total liabilities and shareholders' equity Revenues Best Buy Company, Incorporated Income Statement For the Year Ended February 1, 2020 Costs and expenses Operating income ($ in millions) Other income (expense)* Income before income taxes Income tax expense Net income *Includes $64 of interest expense. Required: $ 43,638 41,629 2,009 (16) 1,993 452 $ 1,541 $ 5,288 2,772 8,060 4,052 3,479 $ 15,591 1-a. Calculate the current ratio for Best Buy for its fiscal year ended February 1, 2020. 1-b. Calculate the acid-test ratio for Best Buy for its fiscal year ended February 1, 2020. 1-c. Calculate the debt to equity ratio for Best Buy for its fiscal year ended February 1, 2020. 1-d. Calculate the times interest earned ratio for Best Buy for its fiscal year ended February 1, 2020. Note: For all requirements, round your answers to 2 decimal places.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Financial and Managerial Accounting

Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura

5th edition

9780133851281, 013385129x, 9780134077321, 133866297, 133851281, 9780133851298, 134077326, 978-0133866292

More Books

Students also viewed these Accounting questions

Question

Discuss whether self-actualization should be everyones goal.

Answered: 1 week ago