Question
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 $ 2,156 Accounts receivable (net) 1,252 Inventory 5,069 Other current assets 428 Total current assets 8,905 Long-term assets 3,723 Total assets $ 12,628 Liabilities and Shareholders Equity Current liabilities: Accounts payable $ 5,350 Other current liabilities 4,275 Total current liabilities 9,625 Long-term liabilities 2,252 Shareholders equity 751 Total liabilities and shareholders equity $ 12,628
Tech Supplies Company, Incorporated Income Statement For the Year Ended February 1, 2020 ($ in millions)
Revenues $ 39,618 Costs and expenses 38,171 Operating income 1,447 Other income (expense)* (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.
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