FIN 300 CSU Financial Management Average Collection Period Ratio Analysis Paper

Can you help me understand this Marketing question?

Best Buy Co., Inc.

Income Statement

2/3/2018 1/28/2017 1/30/2016 1/31/2015
Revenue
Total Revenue 42,151,000 39,403,000 39,528,000 40,339,000
Cost of Revenue 32,275,000 29,963,000 30,334,000 31,292,000
Gross Profit 9,876,000 9,440,000 9,194,000 9,047,000
Operating Expenses
Selling General and Administrative 7,911,000 7,493,000 7,612,000 7,550,000
Operating Income or Loss 1,965,000 1,947,000 1,582,000 1,497,000
Income from Continuing Operations
Add Total Other Income/Expenses Net -148,000 -131,000 -272,000 -110,000
Interest Expense 75,000 72,000 80,000 90,000
Income Before Tax 1,742,000 1,744,000 1,230,000 1,297,000
Income Tax Expense 818,000 609,000 503,000 141,000
Add Discontinued Operations 1,000 21,000 90,000 -13,000
Net Income 925,000 1,156,000 817,000 1,143,000

Best Buy Co., Inc.

Balance Sheet

2/3/2018 1/28/2017 1/30/2016 1/31/2015
Current Assets
Cash And Cash Equivalents 1,101,000 2,240,000 1,976,000 2,432,000
Short Term Investments 2,196,000 1,848,000 1,384,000 1,539,000
Net Receivables 1,049,000 1,347,000 1,162,000 1,280,000
Inventory 5,209,000 4,864,000 5,051,000 5,174,000
Other Current Assets 274,000 217,000 313,000 1,047,000
Total Current Assets 9,829,000 10,516,000 9,886,000 11,472,000
Long Term Investments 0 13,000 27,000 3,000
Property Plant and Equipment 2,421,000 2,293,000 2,346,000 2,295,000
Goodwill 425,000 425,000 425,000 425,000
Intangible Assets 18,000 18,000 18,000 57,000
Other Assets 356,000 591,000 817,000 993,000
Deferred Long Term Asset Charges 159,000 317,000 510,000 574,000
Total Assets 13,049,000 13,856,000 13,519,000 15,245,000
Current Liabilities
Accounts Payable 4,873,000 4,984,000 4,450,000 5,030,000
Short/Current Long Term Debt 499,000 0 350,000 0
Other Current Liabilities 1,043,000 944,000 975,000 1,609,000
Total Current Liabilities 7,817,000 7,122,000 6,925,000 7,777,000
Long Term Debt 648,000 1,158,000 1,168,000 1,492,000
Other Liabilities 805,000 704,000 877,000 901,000
Total Liabilities 9,437,000 9,147,000 9,141,000 10,250,000
Stockholders’ Equity
Total Stockholder Equity 3,612,000 4,709,000 4,378,000 4,995,000

Using the attached financial statements for Best Buy Co., Inc. complete the financial statement analysis and ratio analysis by answering the questions below.

a. Calculate average collection period, total asset turnover, inventory turnover, and days in inventory.

b. Assess the activity of the firm, using your calculations in part a, over the four year period.

c. Calculate the gross profit margin, operating margin, and net profit margin.

d. Assess the profitability of the firm, using your calculations in part c, over the four year period.

Requirements:

  • Submit your paper in a Word document, showing all of your calculations (attach Excel File if necessary).
  • Use terms, evidence, and concepts from class readings.
  • Your paper must be formatted according to the CSU Global Writing Center.

The exercise should be 3-4 pages (not including title or reference pages), double spaced, follow the CSU Global Writing Center, and include a minimum of four (4) sources with at least 2 from scholarly or peer review journals. See the Module 2 Critical Thinking Rubric for full details on how you will be graded on this assignment.

APA 7

Reference page

superadmin (28431)
New York University
15 MILLION STUDENTS HELPED!

Sign up to view the full answer

View Answer

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
Have a homework question? Get help from verified tutors now!

Are you looking for Assignment Help save 10% with this code GEEKS10