The March 29, 2012, edition of the Wall Street Journal Online contains an article by Miguel Bustillo entitled, "Best Buy Forced to Rethink Big Box." The article explains how the 1,100 giant stores, which enabled Best Buy to obtain its position as the largest retailer of electronics, are now reducing the company's profitability and even threatening its survival. The problem is that many customers go to Best Buy stores to see items but then buy them for less from online retailers. As a result, Best Buy recently announced that it would close 50 stores and switch to smaller stores. However, some analysts think that these changes are not big enough. Suppose the following data were extracted from the 2022 and 2017 annual reports of Best Buy. (All amounts are in millions.) Total assets at year-end Net sales Net income 2022 (b) $17,849 50,272 1,277 2021 $18,302 Using the data above, answer the following questions. 2017 $11,864 30,848 1,140 2016 $10,294 Compute the profit margin, asset turnover, and return on assets for 2022 and 2017. (Round all percentages to 1 decimal places, e.g. 15.1% and asset turnover ratio to 2 decimal places, e.g. 15.21.)
The March 29, 2012, edition of the Wall Street Journal Online contains an article by Miguel Bustillo entitled, "Best Buy Forced to Rethink Big Box." The article explains how the 1,100 giant stores, which enabled Best Buy to obtain its position as the largest retailer of electronics, are now reducing the company's profitability and even threatening its survival. The problem is that many customers go to Best Buy stores to see items but then buy them for less from online retailers. As a result, Best Buy recently announced that it would close 50 stores and switch to smaller stores. However, some analysts think that these changes are not big enough. Suppose the following data were extracted from the 2022 and 2017 annual reports of Best Buy. (All amounts are in millions.) Total assets at year-end Net sales Net income 2022 (b) $17,849 50,272 1,277 2021 $18,302 Using the data above, answer the following questions. 2017 $11,864 30,848 1,140 2016 $10,294 Compute the profit margin, asset turnover, and return on assets for 2022 and 2017. (Round all percentages to 1 decimal places, e.g. 15.1% and asset turnover ratio to 2 decimal places, e.g. 15.21.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Current Attempt in Progress
The March 29, 2012, edition of the Wall Street Journal Online contains an article by Miguel Bustillo entitled,
"Best Buy Forced to Rethink Big Box." The article explains how the 1,100 giant stores, which enabled Best Buy
to obtain its position as the largest retailer of electronics, are now reducing the company's profitability and
even threatening its survival. The problem is that many customers go to Best Buy stores to see items but then
buy them for less from online retailers. As a result, Best Buy recently announced that it would close 50 stores
and switch to smaller stores. However, some analysts think that these changes are not big enough.
Suppose the following data were extracted from the 2022 and 2017 annual reports of Best Buy. (All amounts
are in millions.)
Total assets at year-end
Net sales
Net income
2022
(b)
$17,849
50,272
1.277
Using the data above, answer the following questions.
2021
2022
$18,302
41
2017
$11,864
30,848
1,140
14,776
Compute the profit margin, asset turnover, and return on assets for 2022 and 2017. (Round all
percentages to 1 decimal places, e.g. 15.1% and asset turnover ratio to 2 decimal places, e.g.
15.21.)
Screenshot
2016
$10,294
i
2017
MAR
.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd0b9094c-857f-4394-9647-e46fdce81da0%2F40eb053e-e42b-4ac4-8d3d-b6d9cc76b1ef%2Ffudpooc_processed.png&w=3840&q=75)
Transcribed Image Text:Current Attempt in Progress
The March 29, 2012, edition of the Wall Street Journal Online contains an article by Miguel Bustillo entitled,
"Best Buy Forced to Rethink Big Box." The article explains how the 1,100 giant stores, which enabled Best Buy
to obtain its position as the largest retailer of electronics, are now reducing the company's profitability and
even threatening its survival. The problem is that many customers go to Best Buy stores to see items but then
buy them for less from online retailers. As a result, Best Buy recently announced that it would close 50 stores
and switch to smaller stores. However, some analysts think that these changes are not big enough.
Suppose the following data were extracted from the 2022 and 2017 annual reports of Best Buy. (All amounts
are in millions.)
Total assets at year-end
Net sales
Net income
2022
(b)
$17,849
50,272
1.277
Using the data above, answer the following questions.
2021
2022
$18,302
41
2017
$11,864
30,848
1,140
14,776
Compute the profit margin, asset turnover, and return on assets for 2022 and 2017. (Round all
percentages to 1 decimal places, e.g. 15.1% and asset turnover ratio to 2 decimal places, e.g.
15.21.)
Screenshot
2016
$10,294
i
2017
MAR
.
![(b)
Compute the profit margin, asset turnover, and return on assets for 2022 and 2017. (Round all
percentages to 1 decimal places, e.g. 15.1% and asset turnover ratio to 2 decimal places, e.g.
15.21.)
Profit Margin
Asset Turnover
Return on Assets
2022
eTextbook and Media
Save for Later
41
%
times
14,776
%
Screenshot
2017
%
times
(c)
The parts of this question must be completed in order. This part will be available when you complete the part
above.
MAR
!
%
Attempts: 0 of 3 used Submit Answer](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd0b9094c-857f-4394-9647-e46fdce81da0%2F40eb053e-e42b-4ac4-8d3d-b6d9cc76b1ef%2Fs8y2myr_processed.png&w=3840&q=75)
Transcribed Image Text:(b)
Compute the profit margin, asset turnover, and return on assets for 2022 and 2017. (Round all
percentages to 1 decimal places, e.g. 15.1% and asset turnover ratio to 2 decimal places, e.g.
15.21.)
Profit Margin
Asset Turnover
Return on Assets
2022
eTextbook and Media
Save for Later
41
%
times
14,776
%
Screenshot
2017
%
times
(c)
The parts of this question must be completed in order. This part will be available when you complete the part
above.
MAR
!
%
Attempts: 0 of 3 used Submit Answer
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