Reference no: EM133044380
Question - Bargain Deal, Inc., is a leading retailer specializing in consumer electronics. A condensed income statement and balance sheet for the fiscal year ended January 28, 2017, are shown below.
Bargain Deal, Inc. Balance Sheet At January 28, 2017 ($ in millions)
Assets
Current assets:
Cash and cash equivalents $2,156
Short-term investments 1,323
Accounts receivable (net) 1,252
Inventory 5,069
Other current assets 428
Total current assets 10,228
Long-term assets 3,723
Total assets $13,951
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $5,350
Other current liabilities 4,275
Total current liabilities 9,625
Long-term liabilities 2,252
Shareholders' equity 2,074
Total liabilities and shareholders' equity $13,951
Bargain Deal, Inc. Income Statement For the Year Ended January 28, 2017 ($ in millions)
Revenues $39,618
Costs and expenses 38,171
Operating income 1,447
Other income (expense)* (83)
Income before income taxes 1,364
Income tax expense 773
Net income $591
*Includes $242 of interest expense.
Required -
a. Calculate the current ratio for Bargain Deal for its fiscal year ended January 28, 2017.
b. Calculate the acid-test ratio for Bargain Deal for its fiscal year ended January 28, 2017.
c. Calculate the debt to equity ratio for Bargain Deal for its fiscal year ended January 28, 2017.
d. Calculate the times interest earned ratio for Bargain Deal for its fiscal year ended January 28, 2017.