Refer to Best Buy’s financial statements in Appendix A to answer the following.
1. Assume that the amounts reported for inventories and cost of sales reflect items purchased in a form ready for resale. Compute the net cost of goods purchased for the fiscal year ended February 28, 2009.
2. Compute the current ratio and acid-test ratio as of February 28, 2009, and March 1, 2008. Interpret and comment on the ratio results. How does Best Buy compare to the industry average of 1.3 for the current ratio and 0.5 for the acid-test ratio?