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Bargain Deal, Inc.. a leading retailer specializing in consumer electronics. A condensed income statement and balance sheet for the fiscal year ended January 28, 2017.
Bargain Deal, Inc.. a leading retailer specializing in consumer electronics. A condensed income statement and balance sheet for the fiscal year ended January 28, 2017. are shown below. Bargain Deal, Inc. Balance Sheet At January 28, 2017 ($ in millions) Assets Current assets: Cash and cash equivalents Short-term investments Accounts receivable (net) Inventory Other current assets Total current assets Long-term assets Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Other current liabilities Total current liabilities Long-term liabilities Shareholders' equity Total liabilities and shareholders' equity $ 2,896 1,308 1,177 5,054 398 9,943 3,648 $13,591 $ 4,600 2,775 7,375 2,222 3,994 $13,591 Bargain Deal, Inc. Income Statement For the Year Ended January 28, 2017 ($ in millions) Revenues $39,543 Costs and expenses 38,156 Operating income 1,387 Other income (expense) (68) Income before income taxes 1,319 Income tax expense 548 Net income $ 771 *Includes $107 of interest expense. Requlred: 1-a. Calculate the current ratio for Bargain Deal for its fiscal year ended January 28, 2017 1-b. Calculate the acid-test ratio for Bargain Deal for its fiscal year ended January 28, 2017. 1-c. Calculate the debt to equity ratio for Bargain Deal for its fiscal year ended January 28, 2017. 1-d. Calculate the times interest earned ratio for Bargain Deal for its fiscal year ended January 28, 2017. (For all requirements, round your answers to 2 decimal places.) 2.16 0.86 1-a. Current ratio 1-6. Acid-test ratio 1-c. Debt to equity ratio 1-d. Times interest eamed ratio 2.40 times
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