PLEASE HELP, I AM LOST!!!

Best Buy Co., Inc's consolidated balance sheets from its 2011 annual report are presented in Exhibit 5-3. a) Using the balance sheets, prepare a vertical common size analysis for 2011 and 2010. Use total assets as a base. b) Using the balance sheets, prepare a horizontal common size analysis for 2011 and 2010. Use 2010 as the base. c) comment on significant trends that appear in (a) and (b).

February 26, 2011 February 27, 2010

Assets Assets

Current assets Current assets

Cash & cash equivalents $1,103 Cash & cash equivalents $1,826

Short-term investments 22 Short-term investments 90

Receivables 2,348 Receivables 2,020

Merchandise inventories 5,897 Merchandise inventories 5,486

Other current assets 1,103 Other current assets 1,144

Total Current Assets 10,473 Total Current Assets 10,566

Property & Equipment

Land & buildings 766 Land & buildings 757

Leasehold improvements 2,318 Leasehold improvements 2,154

Fixures & equipment 4,701 Fixtures & equipment 4,447

Property under capital lease 120 Property under capital lease 95

7,905 7,453

Less accumulated depreciation 4,082 Less accumulated depreciation 3,383

Net property & equipment 3,823 Net property & equipment 4,070

Goodwill 2,454 Goodwill 2,452

Tradenames, Net 133 Tradenames, Net 159

Customer Relaionships, Net 203 Customer Relationships, Net 279

Equity & other investments 328 Equity & other investments 324

Other Assets 435 Other Assets 452

Total Assets $17,849 Total Assets $18,302

Liabilities and Equity

Current Liabilities

Accounts payable $4,894 Accounts payable $5,276

Unredeemed gift card liabilities 474 Unredeemed gift card liabilities 463

Accrued compensation & related expense 570 Accrued compensation & related expenses 544

Accrued liabilities 1,471 Accrued liabilities 1,681

Accrued income taxes 256 Accrued income taxes 316

Short-term debt 557 Short-term debt 663

Current portion of long-term debt 441 Current portion of long-term debt 35

Total Current Loabilities 8,663 Total Current Liabilities 8,978

Long-term Liabilites 1,183 Long-term Liabilites 1,256

Long-term Debt 711 Long-term Debt 1,104

Equity

Best Buy Co., Inc Shareholders' Equity

Preferred stock, $1.00 par value: Autorized-

400,000 shares; Issued and outstanding--none

Common stock, $0.10 par value; Autorized-

1.0 billion shares; Issued and outstanding--

392,590,000 and 418,815,000 share, respectively 39 42

Additional paid-in capital 18 Additional paid-in capital 441

Retained earnings 6,372 Retained earings 5,797

Accumulated other comprehsive income 173 Accumulated other comprehsinve income 40

Total Best Buy Co., Inc, shareholder's equity 6,602 Total Best Buy Co., Inc. shareholders equity 6,320

Noncontrolling interests 690 Noncontrolling interests 644

Total equity 7,292 Total equity 6,964

Total Liabilities and Equity $17,849 Total Liablities and Equity $18,302

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Consolidated Statements of Earnings

$ in millions, except per share amounts

Fiscal Years Ended Feb.26, 2011 Feb. 27, 2010 Feb. 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 & administrative expenses 10,325 9,873 8,984

Restructuring charges 198 52 78

Goodwill & tradename impairment ------- ------- 66

Operating income 2,114 2,235 1,870

Other income (expense)

Investment income & other 51 54 35

Investment impairment -------- ----------- (111)

Interest expense (87) (94) (94)

Earnings before income tax expense & 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 includingnoncontrolling interests 1,366 1,394 1,033

Net earnings attributable to noncontrolling interests (89) (77) (30)

Net earnings attributable to Best Buy Co., Inc $1,277 $1,317 $1,003

Earnings per share attributable to Best Buy Co. Inc.

Basic $3.14 $3.16 $2.43

Diluted $3.08 $3.10 $2.39

Weighted average common shares outstanding (in millions)

Basic 406.1 416.8 412.5

Diluted 416.5 427.5 422.9