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

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