Based on the data presented and the bulleted list of KEY HIGHLIGHTS, please answer the following:A) identify trends in the company's liquidity position including its ability to pay current liabilities B) Discuss the company's ability to sell inventoryC) identify trends in the company's ability to pay long-term debtD) discuss profitability trends

Using the KEY HIGHLIGHTS FILE and financial data throughout the five years for Bed Bath and Beyond Corp discuss a. Trends in the company's Liquidity position including its ability to pay current liabilities; b. Ability to sell inventory c. Trends in the company's ability to pay long-term debt; and d. Profitability trends 2022 2021 2020 2019 2018 LIQUIDITY RATIOS: Current Ratio: Current Assets / Current Liabilities 1.14 1.58 1.55 1.88 1.83 Quick Ratio: (Current Assets - Inventory) / Current Liabilities 0.31 0.85 0.70 0.62 0.57 ASSET MANAGEMENT RATIOS: Inventory Turnover = cost of goods sold / average inventor 3.17 3.25 3.23 2.96 2.81 Number of days in inventory = 365 / inventory turnover 115.15 112.39 112.92 123.20 130.11 Total Assets Turnover = sales revenue / average total assets 1.36 1.30 1.55 1.77 1.78 SOLVENCY RATIOS: Times Interest Earned Ratio: EBIT / Interest expense -6.30 -4.38 0.00 0.00 16.32 Debt/TA ratio 0.97 0.80 0.77 0.61 0.59 Debt/Equity ratio 28.46 4.06 3.41 1.57 1.44 PROFITABILITY RATIOS: Operating Return on Assets = EBIT / total assets -0.08 -0.05 -0.09 -0.01 0.11 Net Return on Assets = Net income / total assets -0.11 -0.02 -0.08 -0.02 0.06 Return on Equity = Net income / equity -3.21 -0.12 -0.35 -0.05 0.15 Gross Profit Margin ratio = gross profit / sales revenue 0.32 0.34 0.32 0.34 0.36 Operating Profit Margin = EBIT / sales revenue -0.05 -0.04 -0.06 -0.01 0.06 Net Profit Margin = net income / sales revenue -0.07 -0.02 -0.06 -0.01 0.03BBBY-financial statement group project Calculat File Home Templafy Insert Page Layout Formulas Data Review View Tell me what you want to do... B29 =SUM(B23:B28) BED BATH AND BEYOND, INC., AND SUBSIDIARIES 2 CONSOLIDATED BALANCE SHEET 3 (In Thousands, Except per share data) Feb. 26, 2022 Feb. 27, 2021 Feb. 29, 2020 March 2 2019 March 3 2108 Febr. 25 2017 5 ASSETS 6 Current Assets: 7 Cash and Cash Equivalents 439,496 1,352,984 1,000,340 508,971 346,140 488,329 8 Short-term investment securities 385,642 485,799 378,039 9 Merchandise Inventory 1,725,410 1,671,909 2,093,869 2,618,922 2, 730,874 2,905, 660 10 Prepaid Expenses and other assets 198,248 595, 152 248,342 296,280 516,025 197,912 11 Assets held for sale 98,092 12 Other Current Assets 13 Total Current Assets 2,363,154 3,620,045 3,826,285 3,909,972 3,971,078 3,591,901 14 Long-Term Investment securities 19,212 19,545 20,380 20,010 19,517 89,592 15 Property and Equipment, Net 1,027,387 918,418 1,430,604 1,853,091 1,909,289 1,837,129 16 Operating Lease Assets 1,562,857 1,587,101 2,006,966 17 Goodwill 391,052 716,283 697,085 18 Other Assets 157,962 311,821 506,280 396,416 424,639 606,948 9 Total Assets 5,130,572 6,456,930 7,790,515 6,570,541 7,040,806 6,822,655 20 21 Liabilities and Shareholders Equity 22 Current Liabilities: 23 Accounts Payable 872,445 986,045 944,194 1,094,078 1,197,504 1,179,088 24 Accrued Expenses and other current liabilities 529,371 636,329 675,776 623, 734 633,100 484,114 25 Merchandise Credit and Gift card liabilities 326,465 312,486 340,407 339,322 335,081 309,478 26 Current Operating Lease Liabilities 346,506 360,061 463,005 27 Liabilities related to Assets held for sale 43,144 28 Current income taxes payable 20,498 59,821 29 Total Current Liabilities 2,074,787 2,294,921 2,466,526 2,077,632 2,165,685 2,032,501 30 Other Liabilities 102,438 82,279 204,926 395,409 431,592 511,303 31 Operating Lease Liabilities 1,508,002 1,509,767 1,818,783 32 Income Taxes Payable 91,424 102,664 46,945 49,235 62,823 67,971 33 Long-Term debt 1,179,776 1,190,363 1,488,400 1,487,934 1,492,078 1,491,603 34 Total Liabilities 4,956,427 5,179,994 6,025,580 4,010,210 4,152,178 4,103,378 35 36 Shareholders Equity 37 Common stock 3,441 3,432 3,436 3,426 3,418 3,395 38 Additional Paid-in Capital 2,235,894 2,152,135 2,167,337 2,118,673 2,057,975 1,974,781 39 Retained Earnings 9,666,091 10,225,253 10,374,826 11,112,887 11,343,503 11,003,890 40 Treasury Stock at cost (11,685,267) (11,048,284) (10,715,755) (10,616,045) (10,467,972) (10,215,539) 41 Accumulated other comprehensive loss (46,014) 55,600) (64,909) (58,610) (48,296) (47,250) Ratios Balance sheet Income Statement Cash Flow Statement + Readyios Balance sheet Income Statement Cash Flow Statement ATH AND BEYOND, INC., and SUBSIDIARIES OLIDATED STATEMENT OF OPERATIONS ousands, Except per share data) Feb. 26, 2022 Feb. 27, 2021 Feb. 29, 2020 March 2 2019 March 3 2018 Febr. 25 2017 $ 7,867,778 $ 9,233,028 $ 11,158,580 $12,028,797 12,349,301 12,215,757 Sales 5,384,287 6,114,947 7,616,920 7,924,817 7,906,286 7,639,407 ofit 2,483,491 3,118,081 3,541,660 4,103,980 4,443,015 4,576,350 General and Administrative Expenses 2,692,292 3,224,363 3,732,498 3,681,210 3,681,694 3,441,140 ents, including on Assets held for sale 36,531 127,341 509.226 509.905 0 0 iring and Transformation Initiatives Expenses 144,025 102,202 0 0 0 0 sale of businesses 18,221 1,062 0 0 0 0 ng Loss (407,578) (336,887) (700,064) (87,135) 761,321 1,135,210 Expense, Net 64,702 76,913 64,789 69.474 65,661 69,555 in) on extinguishment of debt 376 (77,038) 0 0 0 0 ore provision (benefit) from income taxes (472,656) (336,762) (764,853) (156,609) 695.660 1,065.655 (Benefit) from Income Taxes 86,967 (185,989) (151,037) -19.385 270,802 380,547 $ (559,623) $ (150,773) $ (613,816) $ (137,224) $ 424,858 $ 685,108 per share (basic) $ (5.64) $ (1.24) $ (4.94) $ (1.02) $ 3.05 $ 4.61 average shares outstanding (in shares) 99,249 121,446 124,352 134.292 139.238 148,590 Is declared per share (in $ per share) $0 $0 $ 0.68 $0.64 $0.60 $0.5043 Cash Flow from Financing Activities 44 Borrowing of Long-term debt 0 236,400 0 0 45 Repayments of Long-term debt (11,360) (457,827) 0 0 46 Payment of Senior Notes 0 0 (4,224) 47 Repayments of Finance leases (1,033) 0 0 0 0 48 Repayment under share repurchase agreement (47,550) 0 0 0 49 Payment of other liabilities 0 (434) 50 Repurchase of common stock, including fees (589,433) (332,529) (99,710) (148,073) (252,433) (547,022) 51 Payment of dividends (749) (23,108) (85,482) (86,287) (80,877) (55,612) 52 Payment of deferred financing leases (3,443) (7,690) 0 0 53 Proceeds from exercise of stock options 0 2,346 0 10,313 20,424 54 Net Cash used in Financing Activities (606,018) (632,304) (182,846) (238,584) (323,431) (582,210) 55 Effect of exchange rate changes on cash, cash equivalents and n 1,006 5.075 (977) (7,181) (4,035) 3,624 Net (decrease) increase in cash, cash equivalents and (936,340) 378,759 498,494 162,831 (142,189) (27,244) 56 restricted cash 57 Change in cash balances classified as held-for-sale 4.815 (4,815) Net ( decrease) increase in cash, cash equivalents and (936,340) 383,574 493,679 162,831 (142,189) (27,244) 58 restricted cash 59 Cash, cash equivalents and restricted cash: 60 Beginning of period 1,407,224 1,023,650 529,971 367,140 509,329 536,573 61 End of period 470,884 1,407,224 1,023,650 529,971 367,140 509,329 62 63 64 65 66 67 68Key Highlights (2022 10K report): . Since 2019, we have undertaken significant changes to transform our business and adapt to the dynamic retail environment and the evolving needs of our customers in order to position ourselves for long-term success. We have created a more focused portfolio through the divestiture of non- core assets and further strengthened our financial flexibility through key actions such as corporate restructurings and operating expense control to re-set our cost structure. Our management team, led by President and Chief Executive Officer (CEO) Mark Tritton, has been focused on driving an omni-always, customer- inspired strategy to re-establish our authority in the Home, Baby, Beauty & Wellness markets. We have created a more focused portfolio through the divestiture of non-core assets and further strengthened our financial flexibility through key actions such as corporate restructurings and operating expense control to re-set our cost structure and support our ongoing business transformation. We are implementing a growth strategy that will harness the power of data and insights to engage customers across our four core banners (Bed Bath & Beyond, buybuy BABY, Harmon and Decorist) in an enterprise-wide plan to accelerate our omni-channel transformation. Our strategy is underpinned by five key pillars of strategic focus and investment: product, price, promise, place and people. Through this approach, we are becoming a digital-first, customer-focused omni-channel retailer with a more curated, inspirational and differentiated product collection across categories, and creating a more convenient and inspirational shopping experience. Our merchandise and services are offered to customers through an omni- channel platform across our portfolio of banners, which consist of: Bed Bath & Beyond, buybuy BABY, Harmon Health and Beauty, Decorist. We offer a broad assortment of national brands and a growing assortment ofproprietary Owned Brand merchandise in key destination categories including bedding, bath, kitchen food prep, home organization, indoor decor, baby and personal care. We are driving a digital-first, omni-always growth strategy and optimizing our digital and physical store channels to provide our customers with a seamless omni-channel shopping experience. Digital purchases, including web and mobile, can be shipped to a customer from our distribution facilities, directly from vendors, or from a store. Successful execution of our omni-channel and transformation strategy is dependent, in part, on our ability to establish and profitably maintain the appropriate mix of digital and physical presence in the markets we serve. Store purchases are primarily fulfilled from that store's inventory or may also be shipped to a customer from one of our distribution facilities, from a vendor, or from another store. Customers can also choose to pick up orders and contactless Curbside Pickup services, as well as return online purchases to a store, or have an order delivered through one of our delivery partners. As of February 26, 2022, we had distribution facilities totaling approximately 4.4 million square feet. We have partnered with Ryder System, Inc. to develop and operate two new regional distribution centers to provide merchandise to regional stores for both in-store shopping and online shopping services. Ongoing coronavirus (COVID-19) pandemic has materially disrupted our operations to date. In compliance with relevant government directives, we closed all of our retail banner stores across the U.S. and Canada as of March 23, 2020. In May 2020, we announced a phased approach to re-open our stores in compliance with relevant government directives, and as of the end of July 2020, nearly all of our stores reopened. During Fiscal 2020, we divested five non-core businesses generating approximately $534 million in net proceeds, which were reinvested in our core business operations to drive growth, fund share repurchases and reduce our outstanding debt.26,000 store associates and 3500 supply chain associates . A substantial portion of merchandise is shipped through distribution facilities that are located throughout the United States. The remaining merchandise is shipped directly from vendors. Purchased substantially all merchandise in the United States, with the majority from domestic sources (who may manufacture overseas) and the balance from importers. The portion of our merchandise that we purchase directly from overseas sources is increasing and represented approximately 22% of our total purchases in Fiscal 2021. . In Fiscal 2021, we purchased our merchandise from approximately 4,600 suppliers with our largest supplier accounting for approximately 5% of our merchandise purchases and the ten largest suppliers accounting for approximately 23% of such purchases. We have no long-term contracts for purchases of merchandise. We believe that most merchandise, other than brand name goods, is available from a variety of sources and that most brand name goods can be replaced with comparable merchandise. We operate in a highly competitive business environment. We compete with other national, regional, and local physical and online retailers that may carry similar lines of merchandise, including department stores, specialty stores, off-price stores, mass merchandise stores and online only retailers. We believe that the key to competing in our industry is to provide best-in- class customer service and customer experiences in stores and online, which includes providing compelling price and value; high-quality and differentiated products. Our business is subject to seasonal influences. Generally, our sales volumes are higher in the calendar months of August (back to school/college), November and December (holiday), and lower in February.. General economic factors that are beyond our control have materially adversely affected and could continue to materially adversely affect our business. These factors include, but are not limited to, recent supply chain disruptions, labor shortages, wage pressures, rising inflation and the ongoing military conflict between Russia and Ukraine, as well as housing markets, consumer credit availability, consumer debt levels, fuel and energy costs (for example, the price of gasoline), interest rates, tax rates and policy, unemployment trends, the impact of natural disasters such as pandemics, civil disturbances and terrorist activities, foreign currency exchange rate fluctuations, conditions affecting the retail environment for products sold by us and other matters that influence consumer spending and preferences. Store and distribution center closures in compliance with certain regulations. Potential inability of third parties on which we rely, including our suppliers, commercial banks and other external business partners, to meet their obligations to us. Significant reductions in demand or significant volatility in demand for our products. Delays, interruptions and disruptions in our supply chain and higher shipping charges have impacted and could continue to impact our ability to maintain supplies of products and the costs associated with obtaining products. As part of our ongoing business transformation, we have been executing a store fleet optimization program that included the closure of approximately 200 mostly Bed Bath & Beyond stores by the end of Fiscal 2021. In connection with this program, we incurred approximately $92.4 million in costs including contract termination costs, employee-related costs professional fees and non-cash impairment charges harges, of which approximately $47.9 million was incurred in Fiscal 2021. Inflation can adversely affect us by increasing the costs of materials, labor and other costs required to manage and grow our business. We may be unable to raise prices enough to keep up with the rate of inflation, which would reduce our profit margins and returns.We may have amounts of cash and cash equivalents at financial institutions that are in excess of federally insured limits. While we closely manage our cash and cash equivalents balances to minimize risk, if there were disruptions in the financial markets, we cannot be assured that we will not experience losses on our deposits, and it may negatively impact the availability and cost of capital. Share Repurchases: In response to the COVID-19 pandemic, in March 2020, we postponed our plans for share repurchases and suspended the payment of dividends and planned debt reductions. We recommenced share repurchase programs on October 28, 2020, and in Fiscal 2020 entered into accelerated share repurchase programs on October 28, 2020 and January 7, 2021 (as amended on January 29, 2021), totaling $375.0 million. In Fiscal 2021, we announced that we intended to complete our $1 billion three year repurchase plan by the end of Fiscal 2021, two years ahead of schedule, and completed share repurchases of $574.9 million, bringing cumulative repurchases under this plan to approximately $950.0 million through February 26, 2022. An additional approximately $40.0 million was repurchased in March of 2022. Since 2004 through the end of Fiscal 2021, we have repurchased approximately $11.685 billion of our common stock through share repurchase programs. We lease substantially all of our existing stores. The leases provide for original lease terms that generally range from 10 to 15 years and most leases provide for a series of 5-year renewal options, often at increased rents. Approximately $100 million in annual savings from our previously disclosed store fleet optimization program which included the planned closure of approximately 200 mostly Bed Bath & Beyond stores. Approximately $100 million in annual savings from our previously disclosed store fleet] optimization program which included the planned closure of approximately 200 mostly Bed Bath & Beyond stores. Approximately $100 to $150 million in annual selling, general and administrative expense savings from continued optimization of our corporate overhead cost structure.In connection with the above restructuring and transformation initiatives, during Fiscal 2021, we recorded total expense of $281.2 million including $137.2 million in cost of sales, primarily associated with the transition of our product assortment to Owned Brands and, to a lesser extent, to redefine certain existing Owned Brands, as well as $144.0 million in restructuring and transformation initiative expenses for costs associated with our planned store closures as part of the store fleet optimization program and other transformation initiatives. We also recorded impairment charges of approximately $36.5 million, primarily related to store assets. "We completed the divestitures of the following banners: In December 2020, we entered into a definitive agreement to sell Cost Plus World Market to Kingswood Capital Management. In October 2020, we entered into definitive agreements to sell Christmas Tree Shops ("CTS") to Handil Holdings LLC. In October 2020, we entered into a definitive agreement to sell Linen Holdings to The Linen Group, LLC, an affiliate of Lion Equity Partners. In February 2020, we entered into a definitive agreement to sell PersonalizationMall.com ("PMall") to 1-800-FLOWERS.COM During the first quarter of Fiscal 2020, we also sold One Kings Lane to a third party: The net proceeds from these transactions have been reinvested in our core business operations to drive growth, fund share repurchases and reduce our outstanding debt. We commenced renovations of approximately 130 stores, of which approximately 80 were completed, to bring the expression of the new Bed Bath & Beyond to our customers in many of our markets. We completed the planned optimization of our store fleet through the closure of 63 mostly BedBath & Beyond stores during Fiscal 2021, bringing total store closures for the overall program to 207 as of February 26. 2022. Net loss for Fiscal 2021 was $559.6 million, or $5.64 per diluted share, compared with net loss of $150.8 million, or $1.24 per diluted share, for Fiscal 2020. Net loss for Fiscal 2021 included a net unfavorable impact of $4.66 per diluted share associated with restructuring and other transformation initiatives, non-cash impairments, loss on sale of business and loss on debt extinguishment. Fiscal Year Ended February 26, February 27, (in millions) 2022 2021 February 29, 2020 Net sales 7,867.8 $ 9,253.0 11,158.6 Gross Profit 2,483 5 $ 3,118.1 $ 3,541.7 Operating Loss (407.6) 336 9 700.1 Interest expense, net was $64.7 million, $76.9 million, and $64.8 million in Fiscal 2021, 2020, and 2019, respectively. Liquidity: As of February 26, 2022, we had approximately $439.5 million in cash and cash equivalents, a decrease of approximately $913.5 million as compared with February 27, 2021. Capital expenditures: for Fiscal 2021 were $354.2 million, and for Fiscal 2022 are projected to be approximately $390.0 million to $410.0 million. Our capital expenditures in Fiscal 2021 were related to digital and omni- channel capabilities, store remodels and investments in technology across a number of areas including supply chain, merchandising and finance. Key areas of investment include: continuing to improve the presentation and content as well as the functionality, general search and navigation acrossour customer facing digital channels; improving customer data integration and customer relations management capabilities; continuing to enhance service offerings to our customers; continuing to strengthen and deepen our information technology, analytics, marketing, e-commerce, merchandising and finance capabilities; and creating more flexible fulfillment options designed to improve our delivery capabilities and lower our shipping costs. These and other investments are expected to, among other things, provide a seamless and compelling customer experience across our omni-channel retail platform