Problem 4 (14%) A large retailer reported the following (in $millions) on its recent balance sheets: As of 2/1/2020 2/2/2019 Increase During Fiscal 2019 Total assets Total liabilities $9,348 5,989 $6,074 2,768 $3,274 3,221 A. What most likely caused the approximate $3.2 billion higher amounts for total assets and total liabilities reported by the retailer on its 2/1/2020 balance sheet, compared to one year earlier? B. A friend remarks that the increases in (A) will not change my evaluation of this retailer. The $3.2 billion more of good things (assets) almost exactly offsets the $3.2 billion more of bad bad things liabilities). They cancel each other out!" Calculate a most relevant ratio covered in this course to convince your friend that the adjustments in (A) should probably change his evaluation of the retailer. Round answers to nearest whole %. Name of ratio: At 2/1/2020 At 2/2/2019 Numerator Denominator Answer C. Answer each of the following: Did the event you cited in (A) increase the firm's (check one) 1. Obligations Yes No 2. Current assets Yes No 3. Current liabilities Yes No 4. Stockholders' equity Yes No 6 Problem 4 (14%) A large retailer reported the following (in $millions) on its recent balance sheets: As of 2/1/2020 2/2/2019 Increase During Fiscal 2019 Total assets Total liabilities $9,348 5,989 $6,074 2,768 $3,274 3,221 A. What most likely caused the approximate $3.2 billion higher amounts for total assets and total liabilities reported by the retailer on its 2/1/2020 balance sheet, compared to one year earlier? B. A friend remarks that the increases in (A) will not change my evaluation of this retailer. The $3.2 billion more of good things (assets) almost exactly offsets the $3.2 billion more of bad bad things liabilities). They cancel each other out!" Calculate a most relevant ratio covered in this course to convince your friend that the adjustments in (A) should probably change his evaluation of the retailer. Round answers to nearest whole %. Name of ratio: At 2/1/2020 At 2/2/2019 Numerator Denominator Answer C. Answer each of the following: Did the event you cited in (A) increase the firm's (check one) 1. Obligations Yes No 2. Current assets Yes No 3. Current liabilities Yes No 4. Stockholders' equity Yes No 6