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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. Current assets: Bargain Deal, Inc. Balance Sheet At January 28, 2017 ($ in millions) Cash and cash equivalents Short-term investments Accounts receivable (net) Inventory Other current assets Total current assets Long-term assets Assets $ 2,066 1,314 1,207 5,060 410 10,057 3,678 $13,735 Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 4,900 Other current liabilities 3,375 Total current liabilities 8,275 Long-term liabilities 2,234 Shareholders' equity Total liabilities and shareholders' equity 3,226 $13,735 Bargain Deal, Inc. Income Statement For the Year Ended January 28, 2017 ($ in millions) Revenues Costs and expenses Operating income Other income (expense)* Income before income taxes Income tax expense Net income $39,573 38,162 1,411 (74) 1,337 638 $ 699 *Includes $161 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.) 1-a. Current ratio 1-b. Acid-test ratio 1-c. Debt to equity ratio 1-d. Times interest earned ratio times
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