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. (For all requirements, round your answers to 2 decimal places.)

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

Accounting Principles

Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso

11th Edition

111856667X, 978-1118566671

More Books

Students also viewed these Accounting questions

Question

Who is known as the "Father of Marketing Research" and why?

Answered: 1 week ago

Question

Describe the scope of activities of an internal auditing function.

Answered: 1 week ago