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Question 2 Not complete Marked out of 24.00 Flag question Question text Forecast the Statement of...

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Forecast the Statement of Cash Flows
Following are the income statements and balance sheets of Best Buy Co., Inc.

Income Statement,
Fiscal Years Ended ($ millions)
2012
Estimated
Feb. 26,
2011
Revenue $53,037 $50,272
Cost of goods sold 39,672 37,611
Restructuring charges - cost of goods sold -- 24
Gross profit 13,365 12,637
Selling, general and administrative expenses 10,873 10,325
Restructuring charges -- 198
Goodwill and tradename impairment -- --
Operating income 2,492 2,114
Other income (expenses)
Investment income and other 51 51
Interest expense (87) (87)
Earnings before income tax expense and equity in income of affiliates 2,456 2,078
Income tax expense 845 714
Equity in income of affiliates 2 2
Net earnings including noncontrolling interests 1,613 1,366
Net earnings attributable to noncontrolling interests (121) (89)
Net earnings attributable to Best Buy Co., Inc. $1,492 $1,277
Balance Sheet
($ millions)
2012
Estimated
Feb. 26,
2011
Assets
Cash and cash equivalents $1,167 $1,103
Short-term investments 852 22
Receivables 2,493 2,348
Merchandise inventories 6,205 5,897
Other current assets 1,167 1,103
Total current assets 11,884 10,473
Gross property and equipment 8,701 7,905
Less accumulated depreciation 5,031 4,082
Net property and equipment 3,670 3,823
Goodwill 2,454 2,454
Tradenames, Net 108 133
Customer Relationships, Net 165 203
Equity and Other Investments 328 328
Other assets 477 435
Total assets $ 19,086 $ 17,849
Liabilities and Equity
Accounts payable $ 5,145 $ 4,894
Unredeemed giftcard liabilities 477 474
Accrued compensation and related expenses 583 570
Accrued liabilities 1,538 1,471
Accrued income taxes 265 256
Short-term debt 557 557
Current portion of long-term debt 37 441
Total current liabilities 8,602 8,663
Long-term liabilities 1,183 1,183
Long-term debt 674 711
Best Buy Co., Inc. Shareholders' Equity
Preferred stock, $ 1.00 par value: Authorized-400,000 shares; Issued and outstanding-none -- --
Common stock $0.10 par value: Authorized-1.0 billion shares; Issued and outstanding-392,590,000 and 418,815,000 shares, respectively 39 39
Additional paid-in capital 18 18
Retained earnings 7,586 6,372
Accumulated other comprehensive income 173 173
Total Best Buy Co., Inc. shareholders' equity 7,816 6,602
Noncontrolling interests 811 690
Total equity 8,627 7,292
Total liabilities and shareholders' equity $19,086 $17,849
CAPEX (Increase in gross Property and equipment)/Net sales 1.50%
Depreciation expense/Prior year gross PPE 12.00%
Dividends/Net income 18.60%
Long-term debt payments required in fiscal 2013 $37

Refer to the financial information above for Best Buy Co., Inc. Prepare a forecast of its financial year 2012 statement of cash flows. (Hint: Use net income including noncontrolling interests to begin the statement of cash flows. Use negative signs in answers when appropriate.)

Round all answers to the nearest whole number. Use negative signs with answers, when appropriate.

Best Buy Forecasted Statement of Cash Flows
($ millions) 2012 Estimated
Net income including noncontrolling interests Answer
Add: depreciation Answer
Add: amortization Answer
Change in Accounts receivable Answer
Change in Inventories Answer
Change in Other current assets Answer
Change in Other long-term assets Answer
Change in Accounts payable Answer
Change in Unredeemed gift card liabilities Answer
Change in Accrued compensation and related expenses Answer
Change in Accrued liabilities Answer
Change in Accrued income taxes Answer
Net cash from operating activities Answer
Capital expenditures Answer
Increase in Short-term investments Answer
Net cash from investing activities Answer
Dividends Answer
Payments of LT debt Answer
Net cash from financing activities Answer
Net change in cash Answer
Beginning cash Answer
Ending cash Answer

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