Question

Need help with what I got wrong, please.

Presenting an Income Statement and Computing Key Ratios Assume Best Buy Co., Inc., reported the following amounts in its February 1, 2014, and February 2, 2013, financial statements. ($ millions) 2014 2013 Sales revenue $63,494 552,902 Cost of sales 50,098 43.641 Net income (loss) 7,963 7089 Toral assets 38,599 33,652 Stockholders' equity 7,966 6.641 Required a. Prepare an income statement for Best Buy for the year ended February 1, 2014, using the format illustrated in Exhibit 1.8 (found in Chapter 1 of the textbook on page 13). BEST BUY CO., INC. Income Statement(s millions) For Year Ended February 1, 2014 Sales revenue $ 63,493 x Cast of sales (50,098) X Gross profit 13,396 Other operating expenses (5,433) X Net incorre 7,963 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%) 109.03 X % C. Compute Best Buy's debt-to-equity ratio as of February 1, 2014. (Round your answer to one decimal place.) 3.85 x

Answer 1

A. Do not use minus sign

	Best Buy co. 1st February 2014
Sales revenue	$63,494
cost of sales	$50,098
Gross profit	$13,396[$63,494-50,098]
Other operating expenses	$5,433[$13,396-7,963]
Net income	$7,963

b.return on equity

Net income/shareholder's equity

=$7,963/$7,966

=100% [round off to one decimals]

c.debt ot equity

=debt/equity

debt= assets-equity

=$38,599-7,966

=$30,633

Debt to equity = $30,633/$7,966

=3.9 [round off to one decimals]

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