Best Buy is a leading provider of technology products, services, and solutions. The following selected...
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Accounting
Best Buy is a leading provider of technology products, services, and solutions. The following selected information is adapted from the company's January 28, 2017, annual report. (Dollar amounts are stated in millions.)
Beginningof the Year
Endof the Year
Total current assets
$
9,886
$
10,516
Total current liabilities
7,122
6,925
Total assets
13,519
13,856
Total stockholders' equity
4,378
4,709
Operating income
1,854
Net income
1,228
The company has long-term liabilities that bear interest at annual rates ranging from 6 percent to 8 percent.
Required:
a. Compute the companys current ratio at (1) the beginning of the year and (2) the end of the year.
b. Compute the companys working capital at (1) the beginning of the year and (2) the end of the year. (Enter your answers in millions, not in whole dollars.)
c. Is the companys short-term debt-paying ability improving or deteriorating?
d. Compute the companys (1) return on average total assets and (2) return on average stockholders equity.
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