Analyzing, Forecasting, and Interpreting Both Income Statement and Balance Sheet

Question

Analyzing, Forecasting, and Interpreting Both Income Statement and Balance Sheet
Following are the income statements and balance sheets of Best Buy Co., Inc.

Forecast Best Buy's fiscal 2012 income statement and balance sheet using the following relations (assume "no change" for accounts not listed). Assume that all capital expenditures are purchases of property and equipment.

Instructions: Round all answers to the nearest whole number. Do not use negative signs with any of your answers. Remember to use rounded forecasted revenue with subsequent calculations.

Income Statement,
Fiscal Years Ended ($ millions) Feb. 26, 2011 Feb. 27, 2010 Revenue $ 50,272 $ 49,694 Cost of goods sold 37,611 37,534 Restructuring charges - cost of goods sold 24 -- Gross profit 12,637 12,160 Selling, general and administrative expenses 10,325 9,873 Restructuring charges 198 52 Goodwill and tradename impairment -- -- Operating income 2,114 2,235 Investment income and other 51 54 Interest expense (87) (94) Earnings before income tax expense and equity in income of affiliates 2,078 2,195 Income tax expense 714 802 Equity in income of affiliates 2 1 Net earnings including noncontrolling interests 1,366 1,394 Net earnings attributable to noncontrolling interests (89) (77) Net earnings attributable to Best Buy Co., Inc. $ 1,277 $ 1,317

Explanation / Answer

Working

Net earning attributable to non-controlling interest = % of Net earnings attributable to noncontrolling interests/Net earnings including noncontrolling interests * Net earnings including noncontrolling interests

Net earning attributable to non-controlling interest = 2659*6.5%

Net earning attributable to non-controlling interest = $ 173 Million

Net earnings attributable to Best Buy Co., Inc. = Net earnings including noncontrolling interests - Net earning attributable to non-controlling interest

Net earnings attributable to Best Buy Co., Inc. = 2659-173

Net earnings attributable to Best Buy Co., Inc. = 2486

Income Statement, Fiscal Years Ended ($ millions) 2012 Estimated Revenue                   52,786 Cost of goods sold                   39,484 Restructuring charges - cost of goods sold                            -   Gross profit                   13,302 Selling, general and administrative expenses                     5,543 Restructuring charges                            -   Goodwill and tradename impairment                            -   Operating income                     7,759 Other income (expenses) Investment income and other                           51 Interest expense (income) Use a negative sign with answer. -87 Earnings before income tax expense and equity in income of affiliates                     7,723 Income tax expense                     2,657 Equity in income of affiliates                             2 Net earnings including noncontrolling interests                     2,659 Net (earnings) attributable to noncontrolling interests (use a negative sign with answer) -173 Net earnings attributable to Best Buy Co., Inc.                     2,486

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

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