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A company is a leading retailer specializing in consumer electronics. A condensed income statement and balance sheet for the fiscal year ended February 1
A company is a leading retailer specializing in consumer electronics. A condensed income statement and balance sheet for the fiscal year ended February 1 of the current year are shown below. Current assets: A Company Balance Sheet At February 1, Current Year ($ in millions) Assets Cash and cash equivalents Accounts receivable (net) Inventory Other current assets Total current assets Long-term assets Total assets Current liabilities: $2,046 1,197 5,058 406 8,707 3,668 $ 12,375 Liabilities and Shareholders' Equity Accounts payable $ 4,800 Other current liabilities 3,175 Total current liabilities 7,975 Long-term liabilities 2,230 Shareholders' equity. 2,170 $ 12,375 Total liabilities and shareholders' equity Revenues A Company Income Stateneot For the Year Ended February 1, Current Year Costs and expenses Operating income Other income (expense)" ($ in millions) Income before income taxes Income tax expense Net income "Includes $143 of interest expense. $ 39,563 38,160 1,403 (72) 1,331 608 $723 Required: 1-a. Calculate the current ratio for the company for its fiscal year ended February 1. 1-b. Calculate the acid-test ratio for the company for its fiscal year ended February 1. 1-c. Calculate the debt to equity ratio for the company for its fiscal year ended February 1. 1-d. Calculate the times interest earned ratio for the company for its fiscal year ended February 1. Note: For all requirements, round your answers to 2 decimal places. 1-a. Current ratio 1.09 1-b. Acid-test ratio 0.41 1-c. Debt to equity ratio 4.70 1-d. Times interest earned ratio times
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