Question: Refer to best buys financial statements in appendix a to

Refer to Best Buy’s financial statements in Appendix A to answer the following.
1. What is the amount of Best Buy’s accounts receivable as of February 28, 2009?
2. Compute Best Buy’s accounts receivable turnover as of February 28, 2009.
3. How long does it take, on average, for Best Buy to collect receivables? Why is this period so short?
Do you believe that customers actually pay the amounts due within this short period? Explain.
4. Best Buy’s most liquid assets include (a) cash and cash equivalents, (b) short-term investments, and (c) receivables. Compute the percentage that these liquid assets make up of current liabilities as of February 28, 2009. Do the same computations for March 1, 2008. Comment on the company’s ability to satisfy its current liabilities as of its 2009 fiscal year-end compared to its 2008 fiscal year-end.
5. What criteria did Best Buy use to classify items as cash equivalents?

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