Forecast Best Buy's fiscal 2012 balance sheet using the following relations (assume "no change" for accounts not listed). Assume that all capital expenditures are purchases of property and equipment.
Forecast Best Buy's fiscal 2012 balance sheet using the following relations (assume "no change" for accounts not listed). Assume that all capital expenditures are purchases of property and equipment.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 51E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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Following are the income statements and balance sheets of Best Buy Co., Inc.
Income Statement, Fiscal Years Ended |
Feb. 26, 2011 | Feb. 27, 2010 |
---|---|---|
Revenue | $ 50,272 | $ 49,694 |
Cost of goods sold | 37,611 | 37,534 |
Restructuring charges - cost of goods sold | 24 | -- |
Gross profit | 12,637 | 12,160 |
Selling, general and administrative expenses | 10,325 | 9,873 |
Restructuring charges | 198 | 52 |
-- | -- | |
Operating income | 2,114 | 2,235 |
Other income (expenses) | ||
Investment income and other | 51 | 54 |
Interest expense | 87 | 94 |
Earnings before income tax expense and equity in income of affiliates | 2,078 | 2,195 |
Income tax expense | 714 | 802 |
Equity in income of affiliates | 2 | 1 |
Net earnings including noncontrolling interests | 1,366 | 1,394 |
Net (earnings) attributable to noncontrolling interests | 89 | 77 |
Net earnings attributable to Best Buy Co., Inc. | $ 1,277 | $ 1,317 |
Feb. 26, 2011 | Feb. 27, 2010 | |
---|---|---|
Assets | ||
Cash and cash equivalents | $ 1,103 | $ 1,826 |
Short-term investments | 22 | 90 |
Receivables | 2,348 | 2,020 |
Merchandise inventories | 5,897 | 5,486 |
Other current assets | 1,103 | 1,144 |
Total current assets | 10,473 | 10,566 |
Property and equipment | ||
Land and buildings | 766 | 757 |
Leasehold improvements | 2,318 | 2,154 |
Fixtures and equipment | 4,701 | 4,447 |
Property under capital lease | 120 | 95 |
Gross property and equipment | 7,905 | 7,453 |
Less |
4,082 | 3,383 |
Net property and equipment | 3,823 | 4,070 |
Goodwill | 2,454 | 2,452 |
Tradenames, Net | 133 | 159 |
Customer Relationships, Net | 203 | 279 |
Equity and Other Investments | 328 | 324 |
Other assets | 435 | 452 |
Total assets | $ 17,849 | $ 18,302 |
Liabilities and Equity | ||
Accounts payable | $ 4,894 | $ 5,276 |
Unredeemed giftcard liabilities | 474 | 463 |
Accrued compensation and related expenses | 570 | 544 |
Accrued liabilities | 1,471 | 1,681 |
Accrued income taxes | 256 | 316 |
Short-term debt | 557 | 663 |
Current portion of long-term debt | 441 | 35 |
Total current liabilities | 8,663 | 8,978 |
Long-term liabilities | 1,183 | 1,256 |
Long-term debt | 711 | 1,104 |
Best Buy Co., Inc. Shareholders' Equity | ||
-- | -- | |
Common stock $0.10 par value: Authorized-1.0 billion shares; Issued and outstanding-392,590,000 and 418,815,000 shares, respectively | 39 | 42 |
Additional paid-in capital | 18 | 441 |
Retained earnings | 6,372 | 5,797 |
Accumulated other comprehensive income | 173 | 40 |
Total Best Buy Co., Inc. shareholders' equity | 6,602 | 6,320 |
Noncontrolling interests | 690 | 644 |
Total equity | 7,292 | 6,964 |
Total liabilities and shareholders' equity | $ 17,849 | $ 18,302 |
Forecast Best Buy's fiscal 2012 income statement using the following relations (assume "no change" for accounts not listed).
Revenue growth | 4.5% |
Cost of good sold/Revenue | 74.8% |
Restructuring charges - cost of good sold | $-- |
Selling, general and administrative expenses/Revenue | 20.5% |
Restructuring charges | $-- |
Goodwill and trademark impairment | $-- |
Investment income and other | $51 |
Investment impairment | $-- |
Interest expense | $87 |
Income tax expense/Pretax income | 34.4% |
Equity in income of affiliates | $2 |
Net earnings attributable to noncontrolling interests/Net earnings including noncontrolling interests | 7.5% |
-
Round all answers to the nearest whole number
Forecast Best Buy's fiscal 2012 balance sheet using the following relations (assume "no change" for accounts not listed). Assume that all capital expenditures are purchases of property and equipment.
Short-term investments | No change |
Receivables/Revenue | 4.7% |
Merchandise inventories/Revenue | 11.7% |
Other current assets/Revenue | 2.2% |
CAPEX (Increase in gross Property and equipment)/Revenue | 1.5% |
Goodwill | No change |
Amortization expense for Tradenames | $25 |
Amortization expense for Customer relationships | $38 |
Equity and Other Investments | No change |
Other Assets/Revenue | 0.9% |
Accounts payable/Revenue | 9.7% |
Unredeemed gift card liabilities/Revenue | 0.9% |
Accrued compensation and related expenses/Revenue | 1.1% |
Accrued liabilities/Revenue | 2.9% |
Accrued income taxes/Revenue | 0.5% |
Long-term liabilities | No change |
Noncontrolling interests | * |
Depreciation/Prior year gross PPE | 12.0% |
Amortization/Prior year intangible asset balance | 18.7% |
Dividends/Net income | 18.6% |
Long-term debt payments required in fiscal 2013 | $37 |
*increase by net income attributable to noncontrolling interests and assume no dividends |
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