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Prepare a vertical common-size analysis

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Reference no: EM131802736

Problem - Best Buy Co., Inc.'s consolidated balance sheets from its 2007 annual report are presented in the excel file.

Best Buy Co., Inc. Consolidated Statements of Earnings ($ in millions, except per share amounts)

Fiscal Years Ended

3-Mar-07

25-Feb-06

26-Feb-05




Revenue

$35,934

$30,848

$27,433

Cost of goods sold

27,165

23,122

20,938




Gross Profit

8,769

7,726

6,495

Selling, general and admin expenses

6,770

6,082

5,053




Operating income

1,999

1,644

1,442

Net interest income

111

77

1

Gain on investments

20

0

0




Earnings from continuing operations before income tax expense

2,130

1,721

1,443

Income Tax expense

752

581

509

Minority interest in earnings

1

0

0




Earnings from continuing operations

1,377

1,140

943

Gain on disposal of discontinued operations, net of tax

0

0

50




Net earnings

1,377

1,140

$984




Basic Earnigns per share:


Continuing operations

2.79

2.33

1.91

Gain on disposal of discontinued operations

0

0

0.1

Diluted earnings per share

2.79

2.27

1.96




Basic weighted-average common shares outstanding (millions)

482.1

490.3

488.9

Diluted weighted-average common shares outstanding (millions)

496.2

504.8

505

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).

Reference no: EM131802736

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