Instructions

Toys $"$R Us declared Chapter $11$ bankruptgy protection in September $2017,$ for its US operations. The toy retailer is seeking to restructure or remove some of its debts.

Please answer the following questions using the attached excel file: PLEASE USE FORMULAS FROM OUR POWERPOINU SIDDES.

Calculate the Toys $"$R$"$ Us acid test ratio for $2017$ and $2016.$ Interpret these ratios. ie$.$ what does the calculation mean.

Calculate the Toys $"$R$"$ Us debt ratio for $2017$ and $2016.$ Interpret these ratios. I.e$.$ what does the calculation mean.

Why is total stockholders' equity negative?Toys $"$R$"$ Us$,$ Inc. and Subsidiaries

Consolidated Balance Sheets

Condensed and adapted for educational use

In millions