I do not understand the assignment for this chapter Problem 14.7A and from the textbook. For assistance with these problems, please view Problem Demo Exercise 14-4 (4:48).

Submission Instructions

• i don't know how to Submit solution as an "Excel" or "Word" attachments.
• If possible, use one workbook with each problem in a separate worksheet. For any assignment i need Excel i need to use the formulas for any calculations I dont know how to do Introductory Accounting 2 - Problem Demo Exercise 14-4 - demo video Introductory Accounting 2 - Problem Demo Exercise 14-4 - LEARNscape: Empire State University (sunyempire.edu)

 

PROBLEM 14.7A

Basic Ratio Analysis

Best Buy is a leading provider of technology products, services, and solutions. The following selected information is adapted from the company's January 28, 2017, annual report. (Dollar amounts are stated in millions.)

                                  Beginning of the Year                                               End   of the Year
Total current assets    $9,886                                                                        $?10,516?
Total current liabilities  7,122                                                                             6,925?
Total assets                  13,519                                                                           13,856?
Total stockholders' equity 4,378                                                                     4,709?
Operating income                                                                                             1,854?
Net income                                                                                                       1,228?
The company has long-term liabilities that bear interest at annual rates ranging from 6 percent to 8 percent.

Instructions

a. Compute the company's current ratio at (1) the beginning of the year and (2) the end of the year. (Carry to two decimal places.)

b. Compute the company's working capital at (1) the beginning of the year and (2) the end of the year. (Express dollar amounts in thousands.)

c. Is the company's short-term debt-paying ability improving or deteriorating?

d. Compute the company's (1) return on average total assets and (2) return on average stockholders' equity. (Round average assets and average equity to the nearest dollar and final computations to the nearest 1 percent.)

e. As an equity investor, do you think that Best Buy's management is utilizing the company's resources in a reasonably efficient manner? Explain.