What does Best Buys Form 10-K disclose about its receivables?

Best Buy Co., Inc. (BBY), the consumer electronics company, has a fiscal year ending on the Saturday nearest the end of each January.

Since Best Buy is publicly-held, it files a Form 10-K with the Securities and Exchange Commission each year. To follow are Best Buys condensed and adapted balance sheets for the most recent two years. Please note that the original balance sheets were adapted for educational use and should not be relied upon for investment decisions.

The notes to the financial statements contain additional information about the company. To follow is an excerpt from Best Buys 2016 Form 10-K related to its receivables.

1. Summary of Significant Accounting Policies (page 61 of Best Buys 2016 Form 10-K):

Receivables

Receivables consist principally of amounts due from mobile phone network operators for commissions earned; banks for customer credit card and debit card transactions; and vendors for various vendor funding programs.

Questions

1. Why do you think that Best Buy would select the fiscal year ending that it did?

2. What types of Best Buy transactions result in receivables on Best Buys balance sheet? How do you know?

3. Calculate the gross amount of Best Buys receivables balance for each of the two fiscal years presented in the balance sheet. How did you calculate these amounts?

Best Buy Co., Inc. Consolidated Balance Sheets: Condensed and adapted for educational use only In millions For Years Ended ASSETS 1/30/20161/31/2015 Current Assets: LIABILITIES AND EQUITY Current Liabilities: Equity: Paid-in capital and other Retained earnings Total equity Total Liabilities and Equity