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.)
The current asset section of Guardian Consultants balance sheet consists of cash, accounts receivable, and prepaid expenses. The 2021 balance sheet reported the following: cash, $1,400,000; prepaid expenses, $460,000; long-term assets, $3,400,000; and shareholders equity, $3,500,000. The current ratio at the end of the year was 2.5 and the debt to equity ratio was 1.4. Required: Determine the following 2021 amounts and ratios: (Round your "The acid-test ratio" answer to 1 decimal place.)
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