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 | $ 2,066 |
Accounts receivable (net) | 1,207 |
Inventory | 5,060 |
Other current assets | 410 |
Total current assets | 8,743 |
Long-term assets | 3,678 |
Total assets | $ 12,421 |
Liabilities and Shareholders Equity | |
Current liabilities: | |
Accounts payable | $ 4,900 |
Other current liabilities | 3,375 |
Total current liabilities | 8,275 |
Long-term liabilities | 2,234 |
Shareholders equity | 1,912 |
Total liabilities and shareholders equity | $ 12,421 |
Tech Supplies Company, Incorporated | |
---|---|
Income Statement | |
For the Year Ended February 1, 2020 | |
($ in millions) | |
Revenues | $ 39,573 |
Costs and expenses | 38,162 |
Operating income | 1,411 |
Other income (expense)* | (74) |
Income before income taxes | 1,337 |
Income tax expense | 638 |
Net income | $ 699 |
*Footnote asteriskIncludes $161 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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