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Tech Supplies Company, Incorporated, is a leading retailer specializing in consumer electronics. A condensed income statement and balance sheet for the fiscal year ended
Tech Supplies Company, Incorporated, is a leading retailer specializing in consumer electronics. A condensed income statement and balance sheet for the fiscal year ended February 1, 2020, are shown below. Current assets: Tech Supplies Company, Incorporated Balance Sheet At February 1, 2020 ($ in millions) Assets Cash and cash equivalents Accounts receivable (net). Inventory Other current assets Total current assets Long-term assets Total assets Liabilities and Shareholders' Equity Current liabilities: $ 2,156 1,252 5,069 428 8,905 3,723 $ 12,628 Accounts payable Other current liabilities $ 5,350 4,275 Total current liabilities Long-term liabilities Shareholders equity. Total liabilities and shareholders' equity 9,625 2,252 751 $ 12,620 Revenues Tech Supplies Company, Incorporated Income Statement For the Year Ended February 1, 2020 ($ in millions) Costs and expenses Operating income Other income (expense)* $ 39,618 38,171 1,447 (83) Income before income taxes 1,364 Income tax expense 773 Net income $ 591 "Includes $242 of interest expense. Required: 1-a. Calculate the current ratio for Tech Supplies for its fiscal year ended February 1, 2020. 1-b. Calculate the acid-test ratio for Tech Supplies for its fiscal year ended February 1, 2020. 1-c. Calculate the debt to equity ratio for Tech Supplies for its fiscal year ended February 1, 2020 1-d. Calculate the times interest earned ratio for Tech Supplies for its fiscal year ended February 1, 2020. Note: For all requirements, round your answers to 2 decimal places. 1-a Current ratio 1-b. Acid-test ratio 1-c. Debt to equity ration Income tax expense Income before income taxes 1,364 773 $ 591 Net income "Includes $242 of interest expense. Required: 1-a. Calculate the current ratio for Tech Supplies for its fiscal year ended February 1, 2020. 1-b. Calculate the acid-test ratio for Tech Supplies for its fiscal year ended February 1, 2020. 1-c. Calculate the debt to equity ratio for Tech Supplies for its fiscal year ended February 1, 2020. 1-d. Calculate the times interest earned ratio for Tech Supplies for its fiscal year ended February 1, 2020. Note: 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 times
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