Problem - Best Buy Co., Inc.'s consolidated balance sheets from its 2007 annual report are presented in the excel file.
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Best Buy Co., Inc. Consolidated Statements of Earnings ($ in millions, except per share amounts)
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Fiscal Years Ended
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3-Mar-07
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25-Feb-06
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26-Feb-05
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Revenue
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$35,934
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$30,848
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$27,433
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Cost of goods sold
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27,165
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23,122
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20,938
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Gross Profit
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8,769
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7,726
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6,495
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Selling, general and admin expenses
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6,770
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6,082
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5,053
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Operating income
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1,999
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1,644
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1,442
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Net interest income
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111
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77
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1
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Gain on investments
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20
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0
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0
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Earnings from continuing operations before income tax expense
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2,130
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1,721
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1,443
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Income Tax expense
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752
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581
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509
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Minority interest in earnings
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1
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0
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0
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Earnings from continuing operations
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1,377
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1,140
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943
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Gain on disposal of discontinued operations, net of tax
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0
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0
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50
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Net earnings
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1,377
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1,140
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$984
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Basic Earnigns per share:
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Continuing operations
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2.79
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2.33
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1.91
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Gain on disposal of discontinued operations
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0
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0
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0.1
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Diluted earnings per share
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2.79
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2.27
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1.96
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Basic weighted-average common shares outstanding (millions)
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482.1
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490.3
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488.9
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Diluted weighted-average common shares outstanding (millions)
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496.2
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504.8
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505
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Required -
a. Using the balance sheets, prepare a vertical common-size analysis for 2007 and 2006. Use total assets as a base.
b. Using the balance sheets, prepare a horizontal common-size analysis for 2007 and 2006. Use 2006 as the base.
c. Comment on significant trends that appear in (a) and (b).