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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: $ 2,096 1,317 Cash and cash equivalents Short-term investments Accounts receivable (net) Inventory 1, 222 5,063 416 10,114 Other current assets Total current assets Long-term assets 3,693 Total assets $13,807 Current liabilities: Accounts payable $ 5,050 Other current liabilities 3,675 Total current liabilities 8,725 Long-term liabilities 2,240 Shareholders' equity 2,842 Total liabilities and shareholders' equity $13,807 Liabilities and Shareholders' Equity Bargain Deal, Inc. Income Statement For the Year Ended January 28, 2017 ($ in millions) Revenues $39,588 Costs and expenses 38, 165 Operating income 1,423 Other income (expense)* Income before income taxes 1,346 Income tax expense 683 Net income 663 *Includes $188 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.) (77) 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.) > Answer is complete but not entirely correct. 1- Current ratio 1.16 a. 1- Acid-test ratio 0.57 Debt to equity ratio 0.78 x Times interest earned ratio 7.56 X times b. 1- C. 1- d
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