Solution-Calculate the Toys R Us acid-test ratio

Calculate the Toys R Us acid-test ratio

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Reference no: EM131694563

Question - Toys "R" Us, Inc. and Subsidiaries Consolidated Balance Sheets Condensed and adapted for educational use In millions

	Fiscal year ending
	1/28/2017	1/30/2016
ASSETS
Current assets:
Cash and cash equivalents	$566	$680
Accounts and other receivables	255	225
Merchandise inventories	2,476	2,270
Other current assets	92	113
Total current assets	$3,389	$3,288
Property and equipment, net	3,067	3,163
Other assets	452	459
Total assets	$6,908	$6,910

LIABLITIES AND EQUITY
Current liabilities	$2,738	$2,798
Long-term debt	4,642	4,612
Other non-current liabilities	820	765
Total liabilities	$8,200	$8,175
Total stockholders' equity (deficit)	(1,292)	(1,265)
Total liabilities and equity	$6,908	$6,910

Requirements -

1. Calculate the Toys "R" Us current ratio for the most recent two years. Interpret these ratios.

2. Calculate the Toys "R" Us acid-test ratio for the most recent two years. Interpret these ratios. How does the quick ratio compare to the current ratio?

3. Calculate the Toys "R" Us debt ratio for the most recent two years. Interpret these ratios.

4. Why is total stockholders' equity negative?

Reference no: EM131694563

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Calculate the Toys R Us acid-test ratio

Reference no: EM131694563

Reference no: EM131694563

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