Question
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 $ 2,146 Short-term investments 1,322 Accounts receivable (net) 1,247 Inventory 5,068 Other current assets 426 Total current assets 10,209 Long-term assets 3,718 Total assets $ 13,927 Liabilities and Shareholders Equity Current liabilities: Accounts payable $ 5,300 Other current liabilities 4,175 Total current liabilities 9,475 Long-term liabilities 2,250 Shareholders equity 2,202 Total liabilities and shareholders equity $ 13,927 Bargain Deal, Inc. Income Statement For the Year Ended January 28, 2017 ($ in millions) Revenues $ 39,613 Costs and expenses 38,170 Operating income 1,443 Other income (expense)* (82 ) Income before income taxes 1,361 Income tax expense 758 Net income $ 603 *Includes $233 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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started