Refer to Best Buy’s financial statements in Appendix A to answer the following.

1. What is Best Buy’s profit margin for fiscal years ended February 26, 2005, and February 28, 2004?

2. Interpret your answers to part 1.

Fast Forward 

3. Access Best Buy’s financial statements (10-K) for fiscal years ending after February 26, 2005, at its Website (BestBuy.com) or the SEC’s EDGAR database (www.sEc.gov). Compare the February 26, 2005, fiscal year profit margin to any subsequent year’s profit margin that you are able to calculate.

Transcribed Image Text:

CONSOLIDATED BALANCE SHEETS ASSETS CURRENT ASSETS 2000 Cash and cash equivalents...... Short-term investments.. $ 879,660 5783,471 125,325 Accounts receivable, act of allowance for doubetul accoumes of $120 and 5547. 172,995 170,568 Retained interests in securitized receivables.. Merchandise ivory... Deemed income taxos 425.678 1,459,520 1517,256 29,518 Prepaid expenses and other current assets TOTAL CURRENT ASSETS Property and equipment, not. Deferred income taxes. Goodwill... 18,497 22.088 2,685,715 2.919,061 738,802 677,107 33.558 18.146 215,884 Other intangible asse 31,331 Other .. 44,092 40.212 TOTAL ASSETS. $3,789.382 $3.730.526 LIABILITIES AND STOCKHOLDERS EQUITY CURRENT LIABILITIES: Accounts payable Acred expenses and other cames liabilities. Accred income tax...... 961,718 228,966 72.274 $ 833,825 149505 71363 79,422 Deferred income taxes... Current installments of long-term debt.. Liabilities of continued operations. TOTAL CURRENT LIABILITIES Long-term debt, excluding current installments.... Accrued straight-line rem and deferred rent credin Accrued lease termination co Other hoblities TOTAL LIABILITIES 1.315 1,008 1,263,846 11.522 1,138.198 22.691 230,426 206,784 184,234 75022 91,920 GRIND 1,791,948 1.506.565 STOCKHOLDERS EQUITY Common stock $0.50 par value: 525,000,000 shares 188,150,383 shares inued and outstanding (200,399,195 in 2004) 94,075 Capital in excess of par value. 721,038 101,950 922,600 Retaining 1,247,221 Accumulated other comprehensive income 25100 TOTAL STOCKHOLDERS' EQUITY.. 2,087,434 2,221.961 Commitments and contingent liabilition 211 AND IN TOTAL LIABILITIES AND STOCKHOLDERS EQUITY 53.789.382 $3.730.526