Forecasting the Statement of Cash Flows Following are the income statements and

Question

Forecasting the Statement of Cash Flows
Following are the income statements and balance sheets of Best Buy Co., Inc.

Refer to the financial information above for Best Buy Co., Inc. Prepare a forecast of its financial year 2012 statement of cash flows. (Hint: Use net income including noncontrolling interests to begin the statement of cash flows. Use negative signs in answers when appropriate.)

Round all answers to the nearest whole number. Use negative signs with answers, when appropriate.

Income Statement, Fiscal Years Ended ($ millions) 2012
Estimated Feb. 26, 2011 Revenue $51,780 $50,272 Cost of goods sold 38,731 37,611 Restructuring charges - cost of goods sold -- 24 Gross profit 13,049 12,637 Selling, general and administrative expenses 10,615 10,325 Restructuring charges -- 198 Goodwill and tradename impairment -- -- Operating income 2,434 2,114 Other income (expenses) Investment income and other 51 51 Interest expense (87) (87) Earnings before income tax expense and equity in income of affiliates 2,398 2,078 Income tax expense 825 714 Equity in income of affiliates 2 2 Net earnings including noncontrolling interests 1,575 1,366 Net earnings attributable to noncontrolling interests (118) (89) Net earnings attributable to Best Buy Co., Inc. $1,457 $1,277

Explanation / Answer

Best Buy Forecasted Statement of Cash Flows

$ Net income including noncontrolling interests 1575 Add: depreciation 5031 -4082 949 Add: amortization 133 + 203 - 108 - 165 63 Change in Accounts receivable 2434 - 2348 -86 Change in Inventories 6058 - 5897 -161 Change in Other current assets 1139 - 1103 -36 Change in Other long-term assets 466 - 435 -31 Change in Accounts payable 5023 - 4894 129 Change in Unredeemed gift card liabilities 466 - 474 -8 Change in Accrued compensation and related expenses 0 Change in Accrued liabilities 1502 - 1471 31 Change in Accrued income taxes 259 - 256 3 Net cash from operating activities 2428 Capital expenditures 8682 - 7905 -777 Increase in Short-term investments 925 -22 -903 Net cash from investing activities -1680 Dividends -675 Payments of LT debt 674 - 711 -37 Net cash from financing activities -712 Net change in cash 36 Beginning cash 1103 Ending cash 1139

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.