Determining cost of goods sold

Question

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.