Presenting an Income Statement and Computing Key Ratios
Best Buy Co., Inc., reported the following amounts in its February 1, 2014, and February 2, 2013, financial statements.
($ millions) 2014 2013
Sales revenue $42,410 $39,827
Cost of sales 32,720 30,528
Net income (loss) 523 (420)
Total assets 14,013 16,787
Stockholders' equity 3,989 3,715
Required
a. Prepare an income statement for Best Buy for the year ended February 1, 2014, using the format illustrated in Exhibit 1.8.
BEST BUY CO., INC.
Income Statement ($ millions)
AnswerFor Year Ended February 1, 2014February 1, 2014
AnswerSales revenueCost of salesOther operating expensesTotal assetsStockholders' equityOther liabilitiesGross profitNet income $Answer
AnswerSales revenueCost of salesOther operating expensesTotal assetsStockholders' equityOther liabilitiesGross profitNet income Answer
AnswerSales revenueCost of salesOther operating expensesTotal assetsStockholders' equityOther liabilitiesGross profitNet income Answer
AnswerSales revenueCost of salesOther operating expensesTotal assetsStockholders' equityOther liabilitiesGross profitNet income Answer
AnswerSales revenueCost of salesOther operating expensesTotal assetsStockholders' equityOther liabilitiesGross profitNet income $Answer
b. Calculate Best Buy's return on equity for the year ended February 1, 2014.
(Round your answer to one decimal place. Ex: 0.0345 = 3.5%.)
Answer%
c. Compute Best Buy's debt-to-equity ratio as of February 1, 2014.
(Round your answer to one decimal place.)
Answer
