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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 |