Does best buy appear to be both profitable and liquid

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Reference no: EM131818600

A recent annual report issued by Best Buy revealed the following data. End of Year Beginning of Year Current assets $ 11,729 million $ 10,485 million Current liabilities $ 7,777 million $ 7,436 million Stockholders' equity $ 4,995 million $ 3,986 million The company’s income statement reported total annual revenue of $40,339 million and net income for the year of $1,233 million. Required: a. Evaluate Best Buy’s profitability by computing its net income percentage and its return on equity for the year. b. Evaluate Best Buy’s liquidity by computing its working capital and its current ratio at the beginning of the year and at the end of the year. c. Does Best Buy appear to be both profitable and liquid?

Reference no: EM131818600

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