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Disclosure Analysis

In: Business and Management

Submitted By mbgrein
Words 799
Pages 4
Disclosure Analysis
Student
ACC/422
February 6, 2012 Instructor

Disclosure Analysis Paper
Companies have many financial reports to reveal to the public every year and quarter. These reports show items such as intangible assets, stockholders equity, and equipment. Financial information reports through the balance sheet, income statement, stockholders equity, and the statement of cash flow. Best Buy’s annual report shows how well the company has been during over the past years and explains cause for changes. Best Buy has seen a decrease in receivables, cash, and cash equivalents over the past few years, yet the merchandise inventory has shown increases. Receivables
Best Buy’s receivables consist primarily of amounts due from mobile phone network operators for commissions earned; banks for customer credit card, certain debit card and electronic benefits transfer (EBT) transactions; and vendors for various vendor funding programs (Best Buy, 2011). According to Best Buy (2011), “We establish allowances for uncollectable receivables based on historical collection trends and write-off history. Our allowances for uncollectible receivables were $107 and $101 at February 26, 2011, and February 27, 2010, respectively.” Best Buy has seen a decrease in receivables in the past three years, in fact 2011 saw a 308 million dollar decrease from the prior year (Best Buy, 2011). One possible reason for the decrease may be the economy. Some consumers do not use credit cards for luxury purchases and prefer to use cash for these items. Those who do purchase on credit, pay their balance off each month. For the past three years, Best Buy’s receivables have been negative, but the chain experienced an increase in 2010. Cash and Cash Equivalents
Best Buy’s cash and cash equivalents have fluctuated over the past three years. The Best Buy (2011) website states: “Cash...

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