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 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 $ 2,146
Accounts receivable (net) 1,247
Inventory 5,068
Other current assets 426
Total current assets 8,887
Long-term assets 3,718
Total assets $ 12,605
Liabilities and Shareholders Equity
Current liabilities:
Accounts payable $ 5,300
Other current liabilities 4,175
Total current liabilities 9,475
Long-term liabilities 2,250
Shareholders equity 880
Total liabilities and shareholders equity $ 12,605
Tech Supplies Company, Incorporated
Income Statement
For the Year Ended February 1, 2020
($ in millions)
Revenues $ 39,613
Costs and expenses 38,170
Operating income 1,443
Other income (expense)* (82)
Income before income taxes 1,361
Income tax expense 758
Net income $ 603

*Footnote asteriskIncludes $233 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.

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_2

Step: 3

blur-text-image_3

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

ISE Fundamental Managerial Accounting Concepts

Authors: Thomas Edmonds, Christopher Edmonds, Mark Edmonds, Philip Olds

9th Edition

1260565483, 9781260565485

More Books

Students also viewed these Accounting questions

Question

What is Bacons approach to scientific methodology?

Answered: 1 week ago