Given that Toys "R" Us has declared bankruptcy, what are its current, quick, and debt ratios? Toys "R" Us declared Chapter 11 bankruptcy protection in September 2017, for its US operations. The toy retailer is seeking to restructure or remove some of its debts. Toys "R" Us is also looking to take similar actions for its Canadian operations. Here are the two most recent Toys "R" Us balance sheets. Toys "R" Us, Inc. and Subsidiaries Consolidated Balance Sheets Condensed and adapted for educational use In millions ASSETS Current assets: Fiscal year ending 1/28/2017 1/30/2016 Cash and cash equivalents $ 566 $ 680 Accounts and other receivables Merchandise inventories Other current assets 255 225 2,476 2,270 92 113 Total current assets $ 3,389 $ 3,288 Property and equipment, net 3,067 3,163 Other assets 452 459 Total assets $ 6,908 $ 6,910 LIABLITIES AND EQUITY Current liabilities Long-term debt Other non-current liabilities Total liabilities Total stockholders' equity (deficit) Total liabilities and equity Discussion Questions $ 2,738 $ 2,798 4,642 4,612 820 765 $ 8,200 $ 8,175 (1,292) (1,265) $ 6,908 $ 6,910 2. 1. Calculate the Toys "R" Us current ratio for the most recent two years. Interpret these ratios. Calculate the Toys "R" Us quick ratio for the most recent two years. Interpret these ratios. How does the quick ratio compare to the current ratio? 3. Calculate the Toys "R" Us debt ratio for the most recent two years. Interpret these ratios. 4. Why is total stockholders' equity negative?