Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribed

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 $ 2,056 1,202 5,059 408 8,725 3,673 Total assets $ 12,398 Liabilities and Shareholders' Equity Current liabilities: Accounts payable Other current liabilities Total current liabilities Long-term liabilities $ 4,850 3,275 8,125 2,232 Shareholders' equity 2,041 Total liabilities and shareholders' equity $ 12,398 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 $ 39,568 38,161 1,407 (73) 1,334 623 $ 711 *Includes $152 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 on 2 decimal place

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Michael J. Jones

2nd Edition

1119977150, 978-1119977155

More Books

Students also viewed these Accounting questions