Interpreting the Cash Flow Statement Best Buy Company, Inc., a retailer of consumer electronics headquartered in Minnesota, recently reported the following partial cash flow statement and income statement.
|
(Dollars in millions) Year Ended |
|
|
Cash flows from operating activities |
|
|
Net income |
$570 |
|
Adjustments to reconcile net income to net cash: |
|
|
Depreciation and amortization |
309 |
|
Increase in accounts receivable |
18 |
|
Decrease in inventories |
330 |
|
Increase in other assets |
39 |
|
Increase in accounts payable |
529 |
|
Increase in accrued expenses and other |
557 |
|
Net cash provided by operating activities |
$1,578 |
|
Dollars in millions) Year Ended March 2, 2002 |
|
|
Revenues |
$19,597 |
|
Cost of goods sold |
15,167 |
|
Gross profit |
4,430 |
|
Selling, general, and administrative expenses |
3,493 |
|
Interest expense, net |
1 |
|
Income before provision for income taxes |
936 |
|
Provision for income taxes |
366 |
|
Net income |
$570 |
Required
Use the information from the financial statements to answer each of the following questions.
A. How much cash did Best Buy collect from customers in the fiscal year ended March 2, 2002?
B. How much cash did Best Buy pay out for inventory in the fiscal year ended March 2, 2002? The increase in Accounts Payable arose from purchases of inventory that had not yet been paid for.
C. How much cash did Best Buy pay out for selling, general, and administrative expenses in the fiscal year ended March 2, 2002? The changes in other assets and in accrued expenses and other are related to selling, general, and administrative expenses.