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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 February
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. Tech Supplies Company, Incorporated Balance Sheet At February 1, 2020 ($ in millions) Assets Current assets: Cash and cash equivalents $ 2,136 Accounts receivable (net) 1,242 Inventory 5,067 Other current assets 424 Total current assets 8,869 Long-term assets 3,713 Total assets $ 12,582 Liabilities and Shareholders Equity Current liabilities: Accounts payable $ 5,250 Other current liabilities 4,075 Total current liabilities 9,325 Long-term liabilities 2,248 Shareholders equity 1,009 Total liabilities and shareholders equity $ 12,582 Tech Supplie Long-term liabilities 2,248 Shareholders equity 1,009 Total liabilities and shareholders equity $ 12,582 Tech Supplies Company, Incorporated Income Statement For the Year Ended February 1, 2020 ($ in millions) Revenues $ 39,608 Costs and expenses 38,169 Operating income 1,439 Other income (expense)* (81) Income before income taxes 1,358 Income tax expense 743 Net income $ 615 *Footnote asteriskIncludes $224 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
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