Question
Use the following tables to complete the critical thinking assignment. Best Buy Co., Inc. Income Statement 2/3/2018 1/28/2017 1/30/2016 1/31/2015 Revenue Total Revenue 42,151,000 39,403,000
Use the following tables to complete the critical thinking assignment.
Best Buy Co., Inc.
Income Statement
2/3/2018 | 1/28/2017 | 1/30/2016 | 1/31/2015 | |
Revenue | ||||
Total Revenue | 42,151,000 | 39,403,000 | 39,528,000 | 40,339,000 |
Cost of Revenue | 32,275,000 | 29,963,000 | 30,334,000 | 31,292,000 |
Gross Profit | 9,876,000 | 9,440,000 | 9,194,000 | 9,047,000 |
Operating Expenses | ||||
Selling General and Administrative | 7,911,000 | 7,493,000 | 7,612,000 | 7,550,000 |
Operating Income or Loss | 1,965,000 | 1,947,000 | 1,582,000 | 1,497,000 |
Income from Continuing Operations | ||||
Add Total Other Income/Expenses Net | -148,000 | -131,000 | -272,000 | -110,000 |
Interest Expense | 75,000 | 72,000 | 80,000 | 90,000 |
Income Before Tax | 1,742,000 | 1,744,000 | 1,230,000 | 1,297,000 |
Income Tax Expense | 818,000 | 609,000 | 503,000 | 141,000 |
Add Discontinued Operations | 1,000 | 21,000 | 90,000 | -13,000 |
Net Income | 925,000 | 1,156,000 | 817,000 | 1,143,000 |
Best Buy Co., Inc.
Balance Sheet
2/3/2018 | 1/28/2017 | 1/30/2016 | 1/31/2015 | |
Current Assets | ||||
Cash And Cash Equivalents | 1,101,000 | 2,240,000 | 1,976,000 | 2,432,000 |
Short Term Investments | 2,196,000 | 1,848,000 | 1,384,000 | 1,539,000 |
Net Receivables | 1,049,000 | 1,347,000 | 1,162,000 | 1,280,000 |
Inventory | 5,209,000 | 4,864,000 | 5,051,000 | 5,174,000 |
Other Current Assets | 274,000 | 217,000 | 313,000 | 1,047,000 |
Total Current Assets | 9,829,000 | 10,516,000 | 9,886,000 | 11,472,000 |
Long Term Investments | 0 | 13,000 | 27,000 | 3,000 |
Property Plant and Equipment | 2,421,000 | 2,293,000 | 2,346,000 | 2,295,000 |
Goodwill | 425,000 | 425,000 | 425,000 | 425,000 |
Intangible Assets | 18,000 | 18,000 | 18,000 | 57,000 |
Other Assets | 356,000 | 591,000 | 817,000 | 993,000 |
Deferred Long Term Asset Charges | 159,000 | 317,000 | 510,000 | 574,000 |
Total Assets | 13,049,000 | 13,856,000 | 13,519,000 | 15,245,000 |
Current Liabilities | ||||
Accounts Payable | 4,873,000 | 4,984,000 | 4,450,000 | 5,030,000 |
Short/Current Long Term Debt | 499,000 | 0 | 350,000 | 0 |
Other Current Liabilities | 1,043,000 | 944,000 | 975,000 | 1,609,000 |
Total Current Liabilities | 7,817,000 | 7,122,000 | 6,925,000 | 7,777,000 |
Long Term Debt | 648,000 | 1,158,000 | 1,168,000 | 1,492,000 |
Other Liabilities | 805,000 | 704,000 | 877,000 | 901,000 |
Total Liabilities | 9,437,000 | 9,147,000 | 9,141,000 | 10,250,000 |
Stockholders' Equity | ||||
Total Stockholder Equity | 3,612,000 | 4,709,000 | 4,378,000 | 4,995,000 |
Using the attached financial statements for Best Buy Co., Inc. complete the financial statement analysis and ratio analysis by answering the questions below.
a. Calculate the return on assets (ROA) for Best Buy Co., Inc. using the DuPont System of Analysis over the past four years.
b. Discuss the overall ROA result, along with each of the components.
c. Calculate the return on equity (ROE) for Best Buy Co., Inc. using the Modified DuPont System of Analysis over the past four years.
d. Discuss the overall ROE result, along with each of the components.
e. Provide a summary of your findings over the four years.
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