Option #1: Managerial Accounting at Work In this course, you are required to select option #1 or #2...

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Option #1: Managerial Accounting at Work In this course, you are required to select option #1 or #2 for your Critical Thinking assignment. Select which assignment of the two options you would like to...

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Option #1: Managerial Accounting at Work

In this course, you are required to select option #1 or #2 for your Critical Thinking assignment. Select which assignment of the two options you would like to complete. Once you select Option #1 or #2, you are required to complete both part A and B of your selected Critical Thinking assignment. Also, for part A, you are required to complete one of two options in Connect.These are assignments for which there is no time limit; however, the assignment must be completed in one sitting. You cannot leave the assignment and come back to it, so allow yourself enough time to complete all the questions. Note that you are only given one attempt to complete the Critical Thinking assignment, so ensure that you are prepared.

The Critical Thinking Options #1 and #2 open at the start of the week in which they are scheduled. The Critical Thinking Option you choose is due by 11:59 PM MT on Sunday of the same week. Please refer to the CSU Global late policy for Critical Thinking assignments if you have any questions on due dates.

Required: Complete the following activities:

Part A:

Complete Option #1 Module 1: Critical Thinking in Connect.

Part B: Written Component

You are the management accountant at your organization. Compose a one-page memo for the monthly manager’s meeting to analyze the results of your assessment of the financial reports.

Submit your written assignment to the Dropbox in Canvas.
You must follow APA guidelines with respect to use of subheadings, have one-inch margins, and be double spaced. Format your paper according to the CSU Global Writing Center.(Links to an external site.)
References must include the textbook plus two additional credible academic references. All sources used, including your textbook, must be referenced. Paraphrased and quoted material must have accompanying citations and be cited per APA guidelines. The CSU Global Library(Links to an external site.) is a good place to find references.
Review the grading rubric to understand how you will be graded on this assignment. Reach out to your instructor if you have questions about the assignment.

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Answered Same Day Mar 01, 2021

Tanmoy · Accepted Answer

Best Buy Inc.
Option #1. Ratio Analysis and Interpretation
a. Calculate average collection period, total asset turnover, inventory turnover and days in inventory:
	Ratio Analysis - Best Buy Co Inc.
	02-03-2018
	1-28-2017
	1-30-2016
	1-31-2015
	Average Receivable Turnover
	40.2
	29.3
	34.0
	31.5
	Average Collection Period (days)
	9
	12
	11
	12
	Total Asset Turnover
	3.2
	2.8
	2.9
	2.6
	Inventory Turnover
	6.2
	6.2
	6.0
	6.0
	Days in Inventory
	59
	59
	61
	60
b. Assess the activity of the firm, using your calculations in part a, over the four year period
The average collection period is the number of days required by Best Buy Co to collect the cash provided on credit to the debtors of the company. For calculation of this ratio we have to use the formula Average Collection Period (In Days) = 365 x Average Net Receivables ÷ 365. Based on the above chart we can observe that the average collection period for the company has improved in 2018 compared to the previous years. The faster cash is collected the better is the company in a position to enhance its cash flow and payoff other liabilities. In this case in 2017 the number of days required to collect the cash from debtors was 12 days whereas in 2018 it has improved its performance to 9 days (Jason Henning, 2019). 
Total Assets turnover ratio helps to determine the ability of the company to generate the cash flows by deploying its assets and comparing it against the net sales or revenue. The formula used for calculation of the total asset turnover ratio is Net Sales ÷ Average Total Assets. Thus this ratio helps in the measurement of sales as a percent of average assets in order to evaluate the amount of sales generated from each dollar of the assets (Finance Management, 2014). In 2018 we can observe from the chart that the Total asset turnover ratio has improved for Best Buy Inc compared to the previous years.
The inventory turnover ratio is the ratio which helps to analyse the number of times Best Buy Inc has been able to sale and replace the inventories during a specific period of time i.e. within a financial year. A slow turnover states that the sales are weak and there are excess inventory which can lead to wastage and pilferage. On the other hand,

Option #1: Managerial Accounting at Work In this course, you are required to select option #1 or #2 for your Critical Thinking assignment. Select which assignment of the two options you would like to...

Option #1: Managerial Accounting at Work

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