Important! Read First

Use the following tables to complete the critical thinking assignment.

William & Co, Inc.

Income Statement

2/3/2018 1/28/2017 1/30/2016 1/31/2015

Revenue

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Total Revenue 42,151,000 39,403,000 39,528,000 40,339,000

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Cost of Revenue 32,275,000 29,963,000 30,334,000 31,292,000

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Gross Profit 9,876,000 9,440,000 9,194,000 9,047,000

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Operating Expenses:

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Selling General

and Administrative 7,911,000 7,493,000 7,612,000 7,550,000

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Operating Income

or Loss 1,965,000 1,947,000 1,582,000 1,497,000

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Income from

Continuing Operations

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Add Total Other

Income/Expenses Net -148,000 -131,000 -272,000 -110,000

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Interest Expense 75,000 72,000 80,000 90,000

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Income Before Tax 1,742,000 1,744,000 1,230,000 1,297,000

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Income Tax Expense 818,000 609,000 503,000 141,000

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Add Discontinued

Operations 1,000 21,000 90,000 -13,000

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Net Income 925,000 1,156,000 817,000 143,000

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William & Co In

Balance Sheet

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2/3/2018 1/28/2017 1/30/2016 1/31/2015

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Current Assets

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Cash And Cash

Equivalents 1,101,000 2,240,000 1,976,000 2,432,000

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Short Term

Investments 2,196,000 1,848,000 1,384,000 1,539,000

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Net Receivables 1,049,000 1,347,000 1,162,000 1,280,000

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Inventory 5,209,000 4,864,000 5,051,000 5,174,000

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Other Current

Assets 274,000 217,000 313,000 1,047,000

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Total Current

Assets 9,829,000 10,516,000 9,886,000 11,472,000

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Long Term

Investments 0 13,000 27,000 3,000

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Property Plant

and Equipment 2,421,000 2,293,000 2,346,000 2,295,000

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Goodwill 425,000 425,000 425,000 425,000

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Intangible Assets 18,000 18,000 18,000 57,000

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Other Assets 356,000 591,000 817,000 993,000

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Deferred Long

Term Asset Charges 159,000 317,000 510,000 574,000

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Total Assets 13,049,000 13,856,000 13,519,000 15,245,000

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Current Liabilities

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Accounts Payable 4,873,000 4,984,000 4,450,000 5,030,000

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Short/Current

Long Term Debt 499,000 0 350,000 0

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Other Current

Liabilities 1,043,000 944,000 975,000 1,609,000

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Total Current

Liabilities 7,817,000 7,122,000 6,925,000 7,777,000

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Long Term Debt 648,000 1,158,000 1,168,000 1,492,000

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Other Liabilities 805,000 704,000 877,000 901,000

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Total Liabilities 9,437,000 9,147,000 9,141,000 10,250,000

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Stockholders' Equity

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Total Stockholder Equity 3,612,000 4,709,000 4,378,000 4,995,000

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Choose one of the following two assignments to complete this week. Do not do both assignments. Identify your assignment choice in the title of your submission.

Option #1: Ratio Analysis and Interpretation

Using the attached financial statements for Best Buy Co., Inc., complete the financial statement analysis and ratio analysis by answering the questions below.

a. Calculate average collection period, total asset turnover, inventory turnover, and days in inventory.

b. Assess the firm's activity, using your calculations in part a, over the four year period.

c. Calculate the gross profit margin, operating margin, and net profit margin.

d. Assess the firm's profitability, using your calculations in part c, over the four-year period.

Requirements:

Submit your paper in a Word document, showing all of your calculations (attach Excel File if necessary).

Use terms, evidence, and concepts from class readings.

The exercise should be 3-4 pages (not including title or reference pages), double spaced, and include a minimum of four (4) sources with at least 2 from scholarly or peer-review journals.