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PLEASE help me understand how the correct answer is ($837) million. Assume the following are the fiscal year income statement and balance sheets of Best
PLEASE help me understand how the correct answer is ($837) million.
Assume the following are the fiscal year income statement and balance sheets of Best Bury, Co., Inc. Income Statement (\$ millions) 2016 Revenue Cost of goods sold Gross profit Selling, general and administrative expenses Operating income Net interest income Earnings from continuing operations before income tax expense Income tax expense Net earnings $30,848 23,122 7,726 6,082 1,644 77 1,721 581 $1,140 Balance Sheet (\$ millions) Assets Cash and cash equivalents Short-term investments Receivables Merchandise inventories Other current assets Total current assets Property, plant and equipment, net Goodwill Tradename Long-term investments Other assets Total assets Liabilities and Shareholders' equity Accounts payable Unredeemed gift card liabilities Accrued compensation and related expenses Accrued liabilities Accrued income taxes Current portion of long-term debt Total current liabilities Long-term liabilities Long-term debt Shareholders' equity Preferred stock Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income Total shareholders' equity Total liabilities and shareholders' equity Revenue growth Gross profit margin Selling, general and administrative expenses/Revenue Depreciation (inc. in SG\&A expense)/Prior year net property and equipment Income tax expense/Earnings from continuing operations before income taxes Revenues/Year-end receivables Cost of goods sold/Year-end merchandise inventories Cost of goods sold/Year-end accounts payable Revenue/Year-end net property and equipment Revenue/Year-end accrued compensation and related expenses and accrued liabilities Accrued income taxes/Income tax expense Dividends/Net earnings Long-term debt in next fiscal year What is the forecasted 2017 net cash flow from investing activities? Select one: A. ($837) million B. (\$ 585) million C. $505 million D. $1,928 million D. $1,928 millionStep by Step Solution
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