Question
Best Buy Co, Inc., is a leading retailer specializing in consumer electronics. A condensed income statement and balance sheet for the fiscal year ended January
Best Buy Co, 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.
Best Buy Co, Inc. Balance Sheet At January 28, 2017 ($ in millions) | ||
Assets | ||
Current assets: | ||
Cash and cash equivalents | $ | 2,240 |
Short-term investments | 1,681 | |
Accounts receivable (net) | 1,347 | |
Inventory | 4,864 | |
Other current assets | 384 | |
Total current assets | 10,516 | |
Long-term assets | 3,340 | |
Total assets | $ | 13,856 |
Liabilities and Shareholders Equity | ||
Current liabilities: | ||
Accounts payable | $ | 4,984 |
Other current liabilities | 2,138 | |
Total current liabilities | 7,122 | |
Long-term liabilities | 2,025 | |
Shareholders equity | 4,709 | |
Total liabilities and shareholders equity | $ | 13,856 |
Best Buy Co, Inc. Income Statement For the Year Ended January 28, 2017 ($ in millions) | |||
Revenues | $ | 39,403 | |
Costs and expenses | 37,549 | ||
Operating income | 1,854 | ||
Other income (expense)* | (38 | ) | |
Income before income taxes | 1,816 | ||
Income tax expense | 609 | ||
Net income | $ | 1,207 | |
*Includes $72 of interest expense. Required: 1-a. Calculate the current ratio for Best Buy for its fiscal year ended January 28, 2017. 1-b. Calculate the acid-test ratio for Best Buy for its fiscal year ended January 28, 2017. 1-c. Calculate the debt to equity ratio for Best Buy for its fiscal year ended January 28, 2017. 1-d. Calculate the times interest earned ratio for Best Buy 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-c. Debt to equity ratio
1-d Times interest earned ratio
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