Question

Question 10 Best Buy reported the following selected information for its three most recent fiscal years in U.S. $ millions): Net sales Cost of goods sold Income from operations Net income 2016 $39,528 30,334 1,375 807 2015 $40,339 31,292 1,450 1,246 2014 $40,611 31,212 1,144 695 Calculate the gross profit margin and profit margin for Best Buy for each of the three years. (Round all amounts to 1 decimal place, e.g. 5.2.) 2016 2015 2014 Gross profit margin Profit margin LINK TO TEXT Recalculate the profit margin for the three years using income from operations instead of net income. (Round all amounts to 1 decimal place, e.g. 5.2.) 2016 2015 2014 Profit margin % %

Answer 1

Ans:

Particulars	2016 $	2015 $	2014 $
Net sales	39,528	40,339	40,611
Cost of goods sold	(30,334)	(31,292)	(31,212)
Gross profit	9,194	9,049	9,399

Gross profit margin % = ( Gross profit/Net sales) * 100

Gross profit margin %	(9,194/39,528)*100	(9,049/40,339)*100	(9,399/40,611)*100
Gross profit margin %	23.3	22.4	23.1

Profit margin % = (Net income/Net sales)*100

Profit margin %	(807/39,528)*100	(1,246/40,339)*100	(695/40,611)*100
Profit margin %	2	3.1	1.7

Profit margin using income from operations:

Profit margin % = (Income from operations/Net sales)*100

Profit margin%	(1,375/39,528)*100	(1,450/40,339)*100	(1,144/40,611)*100
Profit margin%	3.5	3.6	2.8

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