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 | $ 2,116 |
Accounts receivable (net) | 1,232 |
Inventory | 5,065 |
Other current assets | 420 |
Total current assets | 8,833 |
Long-term assets | 3,703 |
Total assets | $ 12,536 |
Liabilities and Shareholders Equity | |
Current liabilities: | |
Accounts payable | $ 5,150 |
Other current liabilities | 3,875 |
Total current liabilities | 9,025 |
Long-term liabilities | 2,244 |
Shareholders equity | 1,267 |
Total liabilities and shareholders equity | $ 12,536 |
Tech Supplies Company, Incorporated | |
---|---|
Income Statement | |
For the Year Ended February 1, 2020 | |
($ in millions) | |
Revenues | $ 39,598 |
Costs and expenses | 38,167 |
Operating income | 1,431 |
Other income (expense)* | (79) |
Income before income taxes | 1,352 |
Income tax expense | 713 |
Net income | $ 639 |
*Footnote asteriskIncludes $206 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.
Answer is complete but not entirely
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