Calculate Ratios Here Best Buy Circuit City Financial Data for Best Buy and Circuit City (all financial data in BALANCE SHEET - FISCAL Best Bu Circuit City Assets I Cash & Equivalents 3,732 838 Receivables Net 506 226 32% 4% 21% 6% Inventories 3,338 1,698 28% 43% Other Current Assets 409 Z1 3% 2% Total Current Assets 1,985 2,833 17% 71% Property, Plant & Equipment - Net 2,712 839 23% 21% Other Assets 1,025 299 9% Total Assets 11,722 3,971 100% 8% 100% Liabilities Accounts Payable 3,234 1,053 50% 52% ST Debt & Current Portion Due 418 29 6% 196 Income Taxes Payable 708 76 11% 4% Calculate Common- Sized Statements Best Buy Circuit City Profitability Asset Productivity Financial Leverage Return on Equity (ROE) Return on Assets (ROA) Gross Profit Margin Operating Profit Margin Current Ratio Debt-to-Equity Ratio Inventory Turnover Cash Ratio Other Current Liabilities 1.347 485 21% 24% Capital Intensity Total Current Liabilities Long Term Debt Other Liabilities Total Liabilities Shareholder Equity 5,702 1,623 88% 81% 178 52 3% 3% Sq ft per store 585 341 9% 17% Sales per square foot 6,485 2,016 100% 100% Sales per store Sales per employee Common Equity 5,257 1,955 45% 49% Total Liabilities & Shareholder 11,722 3,971 100% 100% INCOME STATEMENT - Sales 30,848 11,598 100% 100% Cost of Goods Sold 22.666 8.603 13/5% 3570% Gross Profit 8,182 2,995 496% 1243% Depreciation, Depletion & 456 164 28% Selling, General & Admin Costs 6.078 2.590 369% 68% 1075% Uperating Income 1,648 241 100% 100% Non-Uperating Income Earnings Betore Interest & I axes 1,755 263 154% 185% Interest Expense 30 3 3% 2% Income I axes 577 67 51% 47% Net Income Before Extraordinary 1,140 151 100% 106% Extraordinary Items 0 -9 Net Income 1,140 142 0% 100% -6% 100% SELECTED OPERATING DATA No. of Employees 140,000 42,359 No. of Stores 1,035 1,460 Square footage of retail (millions) 33 22 Notes for class discussion Difference in the Business model between Best Buy and CC Make notre of all of the observations you made from the comparisons above. Financial Data for Best Buy and Circuit Calculate Common- City (all financial data in millions) Sized Statements Here BALANCE SHEET - FISCAL 2006 Assets Best Buy Circuit City Best Buy Circuit City Cash & Equivalents Receivables Net Inventories 3,732 506 838 226 3,338 1,698 Other Current Assets 409 71 Total Current Assets 1,985 2,833 Property, Plant & Equipment - Net 2,712 839 Other Assets 1,025 299 Total Assets 11,722 3,971 Liabilities Accounts Payable 3,234 1,053 ST Debt & Current Portion Due LT Dbt 418 29 Income Taxes Payable 708 22 76 Other Current Liabilities 1,347 485 Total Current Liabilities Long Term Debt Other Liabilities Total Liabilities 5,702 1,623 178 52 585 341 6,485 2,016 Profitability Asset Productivity Financial Leverage Return on Equity (ROE) Return on Assets (ROA) Gross Profit Margin Operating Profit Margin Current Ratio Cash Ratio Debt-to-Equity Ratio Inventory Turnover Capital Intensity Sq ft per store Sales per square foot Sales per store Sales per employee Notes for class discussion Calculate Ratios Here Best Buy Circuit City Difference in the Business model between Best Buy and CC 164 Make notre of all of the observations you made from the comparisons above. Shareholder Equity Common Equity 5,257 1,955 Total Liabilities & Shareholder Equity 11,722 3,971 INCOME STATEMENT - FISCAL 2006 Sales 30,848 11,598 Cost of Goods Sold 22,666 8,603 Gross Profit 8,182 2,995 Depreciation, Depletion & Amortization 456 Selling, General & Admin Costs 6,078 2,590 Operating Income 1,648 241 Non-Operating Income Earnings Before Interest & Taxes 1,755 Interest Expense 30 Income Taxes 577 Net Income Before Extraordinary Items 1,140 Extraordinary Items 0 Net Income 1,140 ལྤlཊྛ¥ 263 3 67 151 -9 142 SELECTED OPERATING DATA No. of Employees 140,000 42,359 No. of Stores Square footage of retail (millions) 1,035 33 1,460 22

Calculate Ratios Here Best Buy Circuit City Financial Data for Best Buy and Circuit City (all financial data in BALANCE SHEET - FISCAL Best Bu Circuit City Assets I Cash & Equivalents 3,732 838 Receivables Net 506 226 32% 4% 21% 6% Inventories 3,338 1,698 28% 43% Other Current Assets 409 Z1 3% 2% Total Current Assets 1,985 2,833 17% 71% Property, Plant & Equipment - Net 2,712 839 23% 21% Other Assets 1,025 299 9% Total Assets 11,722 3,971 100% 8% 100% Liabilities Accounts Payable 3,234 1,053 50% 52% ST Debt & Current Portion Due 418 29 6% 196 Income Taxes Payable 708 76 11% 4% Calculate Common- Sized Statements Best Buy Circuit City Profitability Asset Productivity Financial Leverage Return on Equity (ROE) Return on Assets (ROA) Gross Profit Margin Operating Profit Margin Current Ratio Debt-to-Equity Ratio Inventory Turnover Cash Ratio Other Current Liabilities 1.347 485 21% 24% Capital Intensity Total Current Liabilities Long Term Debt Other Liabilities Total Liabilities Shareholder Equity 5,702 1,623 88% 81% 178 52 3% 3% Sq ft per store 585 341 9% 17% Sales per square foot 6,485 2,016 100% 100% Sales per store Sales per employee Common Equity 5,257 1,955 45% 49% Total Liabilities & Shareholder 11,722 3,971 100% 100% INCOME STATEMENT - Sales 30,848 11,598 100% 100% Cost of Goods Sold 22.666 8.603 13/5% 3570% Gross Profit 8,182 2,995 496% 1243% Depreciation, Depletion & 456 164 28% Selling, General & Admin Costs 6.078 2.590 369% 68% 1075% Uperating Income 1,648 241 100% 100% Non-Uperating Income Earnings Betore Interest & I axes 1,755 263 154% 185% Interest Expense 30 3 3% 2% Income I axes 577 67 51% 47% Net Income Before Extraordinary 1,140 151 100% 106% Extraordinary Items 0 -9 Net Income 1,140 142 0% 100% -6% 100% SELECTED OPERATING DATA No. of Employees 140,000 42,359 No. of Stores 1,035 1,460 Square footage of retail (millions) 33 22 Notes for class discussion Difference in the Business model between Best Buy and CC Make notre of all of the observations you made from the comparisons above. Financial Data for Best Buy and Circuit Calculate Common- City (all financial data in millions) Sized Statements Here BALANCE SHEET - FISCAL 2006 Assets Best Buy Circuit City Best Buy Circuit City Cash & Equivalents Receivables Net Inventories 3,732 506 838 226 3,338 1,698 Other Current Assets 409 71 Total Current Assets 1,985 2,833 Property, Plant & Equipment - Net 2,712 839 Other Assets 1,025 299 Total Assets 11,722 3,971 Liabilities Accounts Payable 3,234 1,053 ST Debt & Current Portion Due LT Dbt 418 29 Income Taxes Payable 708 22 76 Other Current Liabilities 1,347 485 Total Current Liabilities Long Term Debt Other Liabilities Total Liabilities 5,702 1,623 178 52 585 341 6,485 2,016 Profitability Asset Productivity Financial Leverage Return on Equity (ROE) Return on Assets (ROA) Gross Profit Margin Operating Profit Margin Current Ratio Cash Ratio Debt-to-Equity Ratio Inventory Turnover Capital Intensity Sq ft per store Sales per square foot Sales per store Sales per employee Notes for class discussion Calculate Ratios Here Best Buy Circuit City Difference in the Business model between Best Buy and CC 164 Make notre of all of the observations you made from the comparisons above. Shareholder Equity Common Equity 5,257 1,955 Total Liabilities & Shareholder Equity 11,722 3,971 INCOME STATEMENT - FISCAL 2006 Sales 30,848 11,598 Cost of Goods Sold 22,666 8,603 Gross Profit 8,182 2,995 Depreciation, Depletion & Amortization 456 Selling, General & Admin Costs 6,078 2,590 Operating Income 1,648 241 Non-Operating Income Earnings Before Interest & Taxes 1,755 Interest Expense 30 Income Taxes 577 Net Income Before Extraordinary Items 1,140 Extraordinary Items 0 Net Income 1,140 ལྤlཊྛ¥ 263 3 67 151 -9 142 SELECTED OPERATING DATA No. of Employees 140,000 42,359 No. of Stores Square footage of retail (millions) 1,035 33 1,460 22

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter15: Capital Investment Analysis

Section: Chapter Questions

Problem 15.5.1MBA

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