Reference no: EM132942687

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:

Problem 1: Calculate the current ratio for Bargain Deal for its fiscal year ended January 28, 2017.

Problem 2: Calculate the acid-test ratio for Bargain Deal for its fiscal year ended January 28, 2017.

Problem 3: Calculate the debt to equity ratio for Bargain Deal for its fiscal year ended January 28, 2017.

Problem 4: Calculate the times interest earned ratio for Bargain Deal for its fiscal year ended January 28, 2017.