Reference no: EM132243202
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 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.