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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 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 Short-term investments Accounts receivable (net) Inventory Other current assets Total current assets Long-term assets Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Other current liabilities Total current liabilities Long-term liabilities Shareholders' equity Total liabilities and shareholders' equity $ 2.126 1, 32e 1,237 5,066 422 10,171 3,788 $13,879 $ 5,200 3.975 9,175 2,246 2.458 $13,879 Bargain Deal, Inc. Income Statement For the Year Ended January 28, 2017 ($ in millions) Revenues $ 39, 603 Costs and expenses 38,168 Operating income 1.435 Other income (expense) (80) Income before income taxes 1, 355 Income tax expense Net income *Includes $215 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 1-0. Debt to equity ratio 1-d. Times interest earned ratio times
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