Question

Balance Sheet Feb. 26, 2011 Feb. 27, 2010 (S millions) Cash and cash equivalents Short-term investments Receivables 1,103 1,826 90 2,020 2,348 5,897 1,103 10,473 Merchandise inventories Other current assets Total current assets Property and equipment Land and buildings Leasehold improvements Fixtures and equipment Property under capital lease Gross property and equipment Less accumulated depreciation Net property and equipment 5,486 1,144 10,566 766 2,318 4,701 120 7,905 4,082 3,823 2,454 133 203 328 435 757 2,154 4,447 95 7,453 3,383 4,070 2,452 159 279 324 452 Goodwill Tradenames, Net Customer Relationships, Net Equity and Other Investments Other assets Total assets Liabilities and Equity Accounts payable Unredeemed giftcard liabilities Accrued compensation and related expenses Accrued liabilities Accrued income taxes Short-term debt Current portion of long-term debt Total current liabilities Long-term liabilities Long-term debt $17,84918,302 $4,894 474 570 1,471 256 557 441 8,663 1,183 $5,276 544 1,681 663 35 8,978 1,256 1,104

Answer 1

INCOME STATMENT FOR THE YEAR 2012 OF BEST BUY INC.

PARTICULARS	Amount in $	Note
Revenue	52780	5% revenue growth
Cost of goods sold	39480	74.8% of revenue
restructuring charges-COGS	0
grossprofit	13302	52780-39480
Selling General and admin exps	10821	20.5% of revenue
Rest, Charges	0
Goodwill and impairment	0
operating income	2481
Investment income and other	51
Interest Expense	(87)	it is an expense and not an income so we will deduct it.
Earning before Income tax and Equity in income of affiliates	2445	2481+51-87	answer 1
Income tax expense	841	34.4% of 2445	answer 2
Equity in Income of Affiliates	2
Net earning including non controlling interest	1606	(2445+2)-841	answer 3
Net earning attributable to non controlling interest	(105)	1606*6.5%
Net earning to best buy inc.	1501	1606-105	answer 4
NOTE YOUR ANSWERS WENT WRONG BEACUSE YOU ADDED INTEREST EXPENSE OF $87 INSTEAD OF DEDUCTING IT FROM OPERATING INCOME OF $2481.