Use the following tables to complete the critical thinking assignment. Best Buy Co., Inc.
Income Statement
2/3/2018 1/28/2017 1/30/2016 1/31/2015
Revenue
Total Revenue 42,151,000 39,403,000 39,528,000 40,339,000
Cost of Revenue 32,275,000 29,963,000 30,334,000 31,292,000
Gross Profit 9,876,000 9,440,000 9,194,000 9,047,000
Operating Expenses
Selling General and Administrative 7,911,000 7,493,000 7,612,000 7,550,000
Operating Income or Loss 1,965,000 1,947,000 1,582,000 1,497,000
Income from Continuing Operations
Add Total Other Income/Expenses Net -148,000 -131,000 -272,000 -110,000
Interest Expense 75,000 72,000 80,000 90,000
Income Before Tax 1 ,742,000 1,744,000 1,230,000 1,297,000
Income Tax Expense 818,000 609,000 503,000 141,000
Add Discontinued Operations 1,000 21,000 90,000 -13,000
Net Income 925,000 1,156,000 817,000 1,143,000
Best Buy Co., Inc.
Balance Sheet
2/3/2018 1/28/2017 1/30/2016 1/31/2015
Current Assets
Cash And Cash Equivalents 1,101,000 2,240,000 1,976,000 2,432,000
Short Term Investments 2,196,000 1,848,000 1,384,000 1,539,000
Net Receivables 1,049,000 1,347,000 1,162,000 1,280,000
Inventory 5,209,000 4,864,000 5,051,000 5,174,000
Other Current Assets 274,000 217,000 313,000 1,047,000
Total Current Assets 9,829,000 10,516,000 9,886,000 11,472,000
Long Term Investments 0 13,000 27,000 3,000
Property Plant and Equipment 2,421,000 2,293,000 2,346,000 2,295,000
Goodwill 425,000 425,000 425,000 425,000
Intangible Assets 18,000 18,000 18,000 57,000
Other Assets 356,000 591,000 817,000 993,000
Deferred Long Term Asset Charges 159,000 317,000 510,000 574,000
Total Assets 13,049,000 13,856,000 13,519,000 15,245,000
Current Liabilities
Accounts Payable 4,873,000 4,984,000 4,450,000 5,030,000
Short/Current Long Term Debt 499,000 0 350,000 0
Other Current Liabilities 1,043,000 944,000 975,000 1,609,000
Total Current Liabilities 7,817,000 7,122,000 6,925,000 7,777,000
Long Term Debt 648,000 1,158,000 1,168,000 1,492,000
Other Liabilities 805,000 704,000 877,000 901,000
Total Liabilities 9,437,000 9,147,000 9,141,000 10,250,000
Stockholders' Equity
Total Stockholder Equity 3,612,000 4,709,000 4,378,000 4,995,000
Using the attached financial statements for Best Buy Co., Inc. complete the financial statement analysis and ratio analysis by answering the questions below.
a. Calculate the return on assets (ROA) for Best Buy Co., Inc. using the DuPont System of Analysis over the past four years.
b. Discuss the overall ROA result, along with each of the components.
c. Calculate the return on equity (ROE) for Best Buy Co., Inc. using the Modified DuPont System of Analysis over the past four years.
d. Discuss the overall ROE result, along with each of the components.
e. Provide a summary of your findings over the four years.