Best Buy Co., Inc., headquartered in Richfield, Minnesota, is one of the leading consumer electronics retailers, operating
Question:
Best Buy Co., Inc., headquartered in Richfield, Minnesota, is one of the leading consumer electronics retailers, operating more than 1,200 stores across the globe. The following was reported in a recent annual report:
Required:
1. Assuming that Best Buy did not sell any property, plant, and equipment in the current year, what was the amount of depreciation expense recorded during the current year?
2. Assume that Best Buy failed to record depreciation during the current year. Indicate the effect of the error (i.e., overstated, understated, or no effect) on the following ratios:
a. Earnings per share.
b. Fixed asset turnover.
c. Current ratio.d. Return on assets.
Step by Step Answer:
Financial Accounting
ISBN: 978-1259964947
10th edition
Authors: Robert Libby, Patricia Libby, Frank Hodge