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mybusinesscourse.com Analyzing, Forecasting, and Interpreting Both Income Statem

ID: 2581994 • Letter: M

Question

mybusinesscourse.com Analyzing, Forecasting, and Interpreting Both Income Statement and Balance Sheet Following are the income statenents and balance sheets of Best Buy Co, Inc. Income Statement, Feb. 26, 2011 Feb. 27, 2010 50,272 $49,694 37,61137,534 Fiscal Years Ended (S millions) Cost of goods sold Restructuring charges-cost of goods sold Gross profit Selling, general and administrative expenses Restructuring charges Goodwill and tradename impairment Operating income Other income (expenses) investment income and other interest expense üncome) Earnings before income tax expense and equity in income of affllates Income tax expense Equity in income of affiliates Net earnings including noncontrolling interests Net (earnings) actributable to noncontrolling interests Net eamings attributable to Best Buy Co., Inc 12,160 9,873 52 10.325 198 2.114 2,235 51 (87) 2,078 54 (94) 2.195 802 1,366 $ 1.272$1,317 Balance Sheet s millions) Feb 26, 2011 Feb. 27, 2010 Cash and cash equivalents $ 1103 $1,826 Short-term investrments 90

Explanation / Answer

Income Statement

Particulars

Feb, 2012

Revenue

$        52,534

Cost of Goods sold

$        39,296

Restructuring Charges

$                 -  

Gross Profit

$        13,239

Selling, general, administration charges

$        10,770

Restructuring Charges

$                 -  

Goodwill, Trademark impairement

$                 -  

Operating Income

$          2,469

Other Income

Investment Income

$                51

Interest Expense

$              (87)

Earnings before income tax

$          2,433

Income tax Expense

$              837

Equity in income of affiliates

$                  2

Net Earnings including noncontrolling interests

$          1,598

Net Earnings attributable to noncontrolling interests

$           (120)

Net Earnings attributable to Best Buy Inc.

$          1,478

Balance Sheet

Particulars

Feb, 2012

Assets

Cash & Cash Equivalents

$          1,583

Short Term Investments

$                22

Receivables

$          2,469

Merchandise Inventories

$          6,147

Other Current Assets

$          1,156

Total Current Assets

$        11,376

Property and Equipment

Gross Property and Equipment

$          8,693

Less : Accumulated Depreciation

$          4,635

Net Property and Equipment

$          4,058

Goodwill

$          2,454

Tradenames, net

$              108

Customer Relationships, net

$              165

Equity and Other Investments

$              328

Other Assets

$              473

Total Assets

$        18,962

Liabilities and Equity

Accounts Payable

$          5,096

Unredeemed gift card liabilities

$              473

Accrued compensation and related expenses

$              578

Accrued liabilities

$          1,523

Accrued income taxes

$              263

Short-term debt

$              557

Current portion of long term debt

$                 -  

Total Current Liabilities

$          8,490

Long term liabilities

$          1,183

Long term debt

$              674

Best Buy co. Inc. Shareholders' Equity

Common Stock

$                39

Additional Paid in Capital

$                18

Retained Earnings

$          7,575

Accumulated Other Comprehensive income

$              173

Total Best Buy co. Inc. Shareholders' Equity

$          7,805

Non Controlling Interest

$              810

Total Equity

$          8,615

Total Liabilities and Equity

$       18,962

Income Statement

Particulars

Feb, 2012

Revenue

$        52,534

Cost of Goods sold

$        39,296

Restructuring Charges

$                 -  

Gross Profit

$        13,239

Selling, general, administration charges

$        10,770

Restructuring Charges

$                 -  

Goodwill, Trademark impairement

$                 -  

Operating Income

$          2,469

Other Income

Investment Income

$                51

Interest Expense

$              (87)

Earnings before income tax

$          2,433

Income tax Expense

$              837

Equity in income of affiliates

$                  2

Net Earnings including noncontrolling interests

$          1,598

Net Earnings attributable to noncontrolling interests

$           (120)

Net Earnings attributable to Best Buy Inc.

$          1,478

Balance Sheet

Particulars

Feb, 2012

Assets

Cash & Cash Equivalents

$          1,583

Short Term Investments

$                22

Receivables

$          2,469

Merchandise Inventories

$          6,147

Other Current Assets

$          1,156

Total Current Assets

$        11,376

Property and Equipment

Gross Property and Equipment

$          8,693

Less : Accumulated Depreciation

$          4,635

Net Property and Equipment

$          4,058

Goodwill

$          2,454

Tradenames, net

$              108

Customer Relationships, net

$              165

Equity and Other Investments

$              328

Other Assets

$              473

Total Assets

$        18,962

Liabilities and Equity

Accounts Payable

$          5,096

Unredeemed gift card liabilities

$              473

Accrued compensation and related expenses

$              578

Accrued liabilities

$          1,523

Accrued income taxes

$              263

Short-term debt

$              557

Current portion of long term debt

$                 -  

Total Current Liabilities

$          8,490

Long term liabilities

$          1,183

Long term debt

$              674

Best Buy co. Inc. Shareholders' Equity

Common Stock

$                39

Additional Paid in Capital

$                18

Retained Earnings

$          7,575

Accumulated Other Comprehensive income

$              173

Total Best Buy co. Inc. Shareholders' Equity

$          7,805

Non Controlling Interest

$              810

Total Equity

$          8,615

Total Liabilities and Equity

$       18,962