Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 $ 2,136 1,242 5,067 424 8,869 3,713 Total assets $ 12,582 Liabilities and Shareholders' Equity Current liabilities: Accounts payable Other current liabilities Total current liabilities Long-term liabilities $ 5,250 4,075 9,325 2,248 Shareholders' equity 1,009 Total liabilities and shareholders' equity $ 12,582 Revenues Tech Supplies Company, Incorporated Income Statement For the Year Ended February 1, 2020 Costs and expenses Operating income ($ in millions) Other income (expense)* Income before income taxes Income tax expense Net income *Includes $224 of Interest expense. Required: $ 39,608 38,169 1,439 (81) 1,358 743 $ 615 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 Answer is not complete. 1.28 1-b. Acid-test ratio 1-c. Debt to equity ratio 1-d. Times interest earned ratio times
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started