Question 3 Not complete Marked out of 3.00 Forecast the Statement of Cash Flows Following are the income statements and balance sheets of Best Buy Co., Inc. 2012 Income Statement, Fiscal Years Ended (5 millions) Estimated Feb. 26, 2011 $51,780 $50,272 Revenue Cost of goods sold 38,731 37,611 Restructuring charges - cost of goods sold Gross profit 13,049 12,637 Selling, general and administrative expenses 10, 615 10,325 198 Restructuring charges Goodwill and tradename impairment 2,434 2, 114 Operating income Other income (expenses) Investment income and other 51 Interest expense ( 87 ) (87 ) Earnings before income tax expense and equity in income of affiliates 2,398 2,078 Income tax expense 825 714 Equity in income of affiliates 2 Net earnings including noncontrolling interests 1,575 1,366 Net earnings attributable to noncontrolling interests (118 ) (89 ) Net earnings attributable to Best Buy Co., Inc. $1,457 $1,277 Balance Sheet 2012 ($ millions) Estimated | Feb. 26, 2011 Assets Cash and cash equivalents $1,139 $1,103 Short-term investments 925 22 Receivables 2,434 2,348 Merchandise inventories 6,058 5,897 Other current assets 1,139 1, 103 Total current assets 1,695 0,473 Gross property and equipment 8,682 7,905 Less accumulated depreciation 5,031 4,082 Net property and equipment 3,651 3,823 Goodwill 2,454 2,454 Tradenames, Net 108 133 Customer Relationships, Net 165 203 Equity and Other Investments 328 Other asset 328 466 435 Total assets Liabilities and equity 18,867 $17,849 Accounts payable Unredeemed gift card liabilities $5,023 $4,894 Accrued compensation and related expenses 466 474 Accrued liabilities 570 570 Accrued income taxes 1,502 ,471 Short-term debt 259 256 Current portion of long-term debt 557 557 Total current liabilities 37 441 Long-term liabilities 8,414 8,663 Long-term debt 1 , 183 1,183 Contingencies and Commitments (Note 13) 674 Best Buy Co., Inc. Shareholders' Equity 711 Preferred stock, $1.00 par value: Authorized - 400,000 shares; Issued and outstanding - none Additional paid-in capital Common stock, $0.10 par value: Authorized - 1.0 billion shares; Issued and outstanding - 392,590,000 and 418,815,000 shares, respectively Retained earnings 39 39 Accumulated other comprehensive income 18 18 Total Best Buy Co., Inc. shareholders' equity 7,558 5,372 Noncontrolling interests 173 173 Total equity , 788 5,602 Total liabilities and Equity 808 690 8,596 7,292 $18,867 $17,849CAPEX (Increase in gross Property and equipment)/Revenue | 1.5% 12% Depreciation/Prior year gross PPE 18.69 Dividends/Net income $37 Long-term debt payments required in fiscal 2013 Refer to the financial information above for Best Buy Co., Inc. Prepare a forecast of its financial year 2012 statement of cash flows. (Hint: Use n income including noncontrolling interests to begin the statement of cash flows. Use negative signs in answers when appropriate.) Round all answers to the nearest whole number. Use negative signs with answers, when appropriate. Best Buy Forecasted Statement of Cash Flows ($ millions) 2012 Estimated Net income including noncontrolling interests Add: depreciation Add: amortization Change in Accounts receivable Change in Inventories Change in Other current assets 5031 x 12%2603/72 Change in Other long-term assets Change in Accounts payable Change in Unredeemed gift card liabilities Change in Accrued compensation and related expenses Change in Accrued liabilities Change in Accrued income taxes Net cash from operating activities Capital expenditures Increase in Short-term investments Net cash from investing activities Dividends Payments of LT debt Net cash from financing activities Net change in cash Beginning cash Ending cash $