Presenting an Income Statement and Computing Key Ratios

Assume Best Buy Co$.,$ Inc., reported the following amounts in its February $1,$ Year $2,$ and February $2,$ Year $1,$ financial statements.

$($$ millions$)$ Year $2$ Year $1$

Sales revenue $$63,994$ $$52,902$

Cost of sales $50,09843,641$

Net income $($loss$)7,9637,089$

Total assets $38,59933,652$

Stockholders' equity $8,2666,641$

Required

a$.$ Prepare an income statement for Best Buy for the year ended February $1,$ Year $2,$ using the format illustrated in Exhibit $1\mathrm{.}8($found in Chapter $1$ of the textbook$).$

BEST BUY CO$.,$ INC.

Income Statement $($$ millions$)$

For Year Ended February $1,$ Year $2$

Answer $1$

Sales revenue

Answer $2$

$0$

Answer $3$

Cost of sales

Answer $4$

$0$

Answer $5$

Gross profit

Answer $6$

$0$

Answer $7$

Other operating expenses

Answer $8$

$0$

Answer $9$

Net income

Answer $10$

$0$

b$.$ Calculate Best Buy's return on equity for the year ended February $1,$ Year $2.$

$($Round your answer to one decimal place. Ex: $0\mathrm{.}0345=3\mathrm{.}5\%.)$

Answer $11$

$\%$

c$.$ Compute Best Buy's debt$-$to$-$equity ratio as of February $1,$ Year $2.$

$($Round your answer to one decimal place.$)$