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Item 3 25 points

Bargain Deal, Inc., is a leading retailer specializing in consumer electronics. A condensed income statement and balance sheet for the fiscal year ended January 30, 2016, are shown below.

 

Bargain Deal, Inc.

Balance Sheet

At January 30, 2016

($ in millions)Assets Current assets:   Cash and cash equivalents$2,176 Short-term investments 1,325 Accounts receivable, net 1,262 Merchandise inventories 5,071 Other current assets 432 Total current assets 10,266 Long-term assets 3,733 Total assets$13,999 Liabilities and Shareholders' Equity Current liabilities:   Accounts payable$5,450 Other current liabilities 4,475 Total current liabilities 9,925 Long-term liabilities 2,256 Shareholders' equity 1,818 Total liabilities and shareholders' equity$13,999 

 

Bargain Deal, Inc.

Income Statement

For the Year Ended January 30, 2016

($ in millions)Revenues$39,628 Costs and expenses 38,173 Operating income 1,455 Other income (expense)* (85)Income before income taxes 1,370 Income tax expense 803 Net income$567 

*Includes $260 of interest expense.

  

Required:

1-a. Calculate the current ratio for Bargain Deal for its fiscal year ended January 30, 2016.

1-b. Calculate the acid-test ratio for Bargain Deal for its fiscal year ended January 30, 2016.

1-c. Calculate the debt to equity ratio for Bargain Deal for its fiscal year ended January 30, 2016.

1-d. Calculate the times interest earned ratio for Bargain Deal for its fiscal year ended January 30, 2016.