P 5-2. Best Buy Co., Inc.'s consolidated statements of earnings from its 2007 annual report are presented in Exhibit 5-3.

a. Using the statement of earnings, prepare vertical common-size analysis for 2007, 2006, and 2005. Use revenue as a base.

b. Using the statement of earnings, prepare horizontal common-size analysis for 2007, 2006, and 2005. Use 2005 as the base.

c. Comment on significant trends that appear in (a) and (b).