Q2 - Financial Statement Analysis (50 min) Calculate at least 4 ratios for EACH of the following ratio categories (profitability, liquidity, solvency, efficiency) Intepret the results. Best Buy Ltd. Statement of Earnings (Income Statement) For the Year Ended Dec 31, 2017 In millions of dollars 2013 2014 2015 2016 2017 Revenue Computers $150.00 $172.50 $198.38 $228.13 $262.35 Phones $75.00 $150.00 $210.00 $294.00 $411.60 Software & Gaming $50.00 $62.50 $78.13 $97.66 $122.07 Total Revenue $275.00 $385.00 $486.50 $619.79 $796.02 Cost of Goods Sold (COGS) $96.25 $134.75 $165.41 $204.53 $238.81 Gross Profit $178.75 $250.25 $321.09 $415.26 $557.21 Operating Expenses Advertising & Marketing $27.50 $38.50 $48.65 $61.98 $79.60 General & Administrative $41.25 $57.75 $72.98 $92.97 $119.40 Research, IT, & Development $30.00 $34.50 $39.68 $45.63 $52.47 Depreciation & Amortization $25.00 $25.00 $25.00 $25.00 $25.00 Total Operating Expenses $123.75 $155.75 $186.30 $225.57 $276.48 Operating Income $55.00 $94.50 $134.79 $189.68 $280.74 Interest Expense $9.00 $9.00 $9.00 $9.00 $9.00 Pre-tax Income $46.00 $85.50 $125.79 $180.68 $271.74 Income Taxes $9.20 $17.10 $25.16 $36.14 $54.35 Net Income (Loss) $36.80 $68.40 $100.63 $144.55 $217.39 Best Buy Ltd. Statement of Financial Position At Dec 31, 2017 In millions of dollars Assets Cash Accounts Receivable Inventory Total Current Assets 2013 2014 2015 2016 2017 $60.00 $13.40 $4.03 $33.58 $85.97 $60.00 $70.00 $70.00 $100.00 $130.00 $100.00 $90.00 $80.00 $70.00 $60.00 $220.00 $173.40 $154.03 $203.58 $275.97 Gross Property Plant & Equipment $250.00 $350.00 $450.00 $500.00 $600.00 Less: Accumulated Depreciation -$50.00 -$75.00 -$100.00 -$125.00 -$150.00 Net Property, Plant, & Equipment $200.00 $275.00 $350.00 $375.00 $450.00 Intangible Assets $100.00 $120.00 $140.00 $140.00 $150.00 Total Long-Term Assets $300.00 $395.00 $490.00 $515.00 $600.00 Total Assets $520.00 $568.40 $644.03 $718.58 $875.97 Liabilities Account Payable $50.00 $70.00 $90.00 $80.00 $100.00 Accrued Liabilities $20.00 $30.00 $40.00 $40.00 $20.00 Current Liabilities $70.00 $100.00 $130.00 $120.00 $120.00 Long-term Debt $150.00 $150.00 $150.00 $150.00 $150.00 Total Liabilities $220.00 $250.00 $280.00 $270.00 $270.00 Shareholder's Equity Common Shares $175.00 $175.00 $175.00 $175.00 $175.00 Preferred Shares $25.00 $25.00 $25.00 $25.00 $25.00 Retained Earnings $100.00 $118.40 $164.03 $248.58 $405.97 Total Equity $300.00 $318.40 $364.03 $448.58 $605.97 Total Liabilities & Equity $520.00 $568.40 $644.03 $718.58 $875.97