Question

Determining cost of goods sold

For a recent year, Best Buy (BBY) reported sales of $43,638 million. Its gross profit was $10,048 million. What was the amount of Best Buy’s cost of goods sold? (Enter answer in millions.)

Answer 1

To determine the cost of goods sold (COGS), you can use the following formula:

\[
\text{Sales} = \text{Cost of Goods Sold} + \text{Gross Profit}
\]

You can rearrange this to solve for COGS:

\[
\text{Cost of Goods Sold} = \text{Sales} - \text{Gross Profit}
\]

Now plug in the values for Best Buy:

- Sales = $43,638 million
- Gross Profit = $10,048 million

Now calculate the COGS:

\[
\text{Cost of Goods Sold} = 43,638 - 10,048 = 33,590
\]

Therefore, the amount of Best Buy’s cost of goods sold is **$33,590 million**.