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Bargain Deal, Inc., is a leading retailer specializing in consumer electronics. A condensed income statement and balance sheet for the fiscal year ended January
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 Short-term investments Accounts receivable (net) Inventory Other current assets Total current assets Long-term assets $ 2,176 1,325 1,262 5,071 432 10,266 Total assets 3,733 $13,999 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 5,450 Other current liabilities 4,475 Total current liabilities 9,925 Long-term liabilities 2,256 Shareholders' equity 1,818 Total liabilities and shareholders' equity $13,999 Bargain Deal, Inc. Income Statement For the Year Ended January 28, 2017 ($ in millions) Revenues Costs and expenses Operating income Other income (expense) * Income before income taxes Income tax expense Net income $39,628 38,173 1,455 (85) 1,370 803 $ 567 *Includes $260 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. (For all requirements, round your answers to 2 decimal places.)
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