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 | $ 2,146 |
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.
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