Disclosure Analysis Paper

In analyzing the disclosures contained within the financial statements of Best Buy

Co. the 10Q form was used giving the most recent financials for the company. It should

be known that the 10Q is a quarterly report demanded by all publicly held companies and

submitted to the Securities and Exchange Commission disclosing the information

relevant to the company's financial position. This analysis will include information on

the disclosures contained within the financial statements related to cash and cash

equivalents, receivables, and inventories.

Through analysis of the Cash flows and the disclosures Best Buy seems somewhat appealing by taking a quick glance but by analyzing the financials a clearer picture can be seen on the direction of the company. When reading notes and analyzing changes in cash there are issues investors should consider. Overall the second quarter of fiscal 2008 ends with 1,511 million cash and cash equivalents. There was a change in Cash provided by operating activities in the first six months of fiscal 2008 being 131 million in comparison with cash used in operating activities of 40 million in the first six months of fiscal 2007. The change as disclosed was due to a decrease in cash used in connection with changes in operating assets and liabilities. The decrease in cash used attributed to the changes in accounts payable and other liabilities primarily due to the timing of vendor payments. There was another disclosure that showed a large change in the cash provided by investing activities in the first six months of fiscal 2008 which was 2,143 million, in comparison to 701 million in the first six months of fiscal 2007. The change was actually due to an increase in the net sales of investments and decrease in cash used in acquisition activities. Best Buy liquidated a substantial portion of the company's investments portfolio in the second quarter of fiscal 2008 in order to repay the bridge loan facility, against what was borrowed to fund a program. As notated by Best Buy, funds generated by operating activities, available cash and cash equivalents and credit facilities continue to be the most significant sources of liquidity. The belief is the funds generated from the expected results of operations and available cash and cash equivalents will be sufficient to finance anticipated expansion plans and strategic initiatives for the remainder of fiscal 2008. The net increase in cash provided by investing activities was notated to be offset by 183 million of cash used to purchase a minority interest in The Carphone Warehouse Group PLC. The investment is done to strengthen the business relationship with CPW, with whom there are agreements to expand the Best Buy Mobile.

In regards to inventory, Best Buy has programs totaling 238 million