Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bargain Deal, Inc., is a leading retailer specializing in consumer electronics. A condensed income statement and balance sheet for the fiscal year ended January 28,

Bargain Deal, Inc., is 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 $ 2,076 Short-term investments 1,315 Accounts receivable (net) 1,212 Inventory 5,061 Other current assets 412 Total current assets 10,076 Long-term assets 3,683 Total assets $ 13,759 Liabilities and Shareholders Equity Current liabilities: Accounts payable $ 4,950 Other current liabilities 3,475 Total current liabilities 8,425 Long-term liabilities 2,236 Shareholders equity 3,098 Total liabilities and shareholders equity $ 13,759 Bargain Deal, Inc. Income Statement For the Year Ended January 28, 2017 ($ in millions) Revenues $ 39,578 Costs and expenses 38,163 Operating income 1,415 Other income (expense)* (75 ) Income before income taxes 1,340 Income tax expense 653 Net income $ 687 *Includes $170 of interest expense. Required: 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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions