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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. Current assets: Cash and cash equivalents Short-term investments Accounts receivable (net) Inventory Other current assets Total current assets Long-term assets Total assets Bargain Deal, Inc. Balance Sheet At January 28, 2017 ($ in millions) Assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Other current liabilities Total current liabilities. Long-term liabilities Shareholders' equity Total liabilities and shareholders' equity Bargain Deal, Inc. Income Statement For the Year Ended January 28, 2017 ($ in millions) Revenues Costs and expenses Operating income Other income (expense)* Income before income taxes Income tax expense Net income $39,618 38,171 1,447 $ (83) 1,364 773 591 $ 2,156 1,323 1,252 5,069 428 10,228 3,723 $13,951 $ 5,350 4,275 9,625 2,252 2,074 $13,951 *Includes $242 of interest expense. Required: 1-6. Calculate the current ratio for Bargain Deal for its fiscal year ended January 28, 2017. 1-b. Calculate the acid-test ratio for Bargain Deal for its fiscal year ended January 28, 2017. 1-c. Calculate the debt to equity ratio for Bargain Deal for its fiscal year ended January 28, 2017. 1-d. Calculate the times interest earned ratio for Bargain Deal for its fiscal year ended January 28, 2017. (For all requirements, round your answers to 2 decimal places.)

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. Current assets: Cash and cash equivalents Short-term investments Accounts receivable (net) Inventory Other current assets Total current assets Long-term assets Total assets Bargain Deal, Inc. Balance Sheet At January 28, 2017 ($ in millions) Assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Other current liabilities Total current liabilities. Long-term liabilities Shareholders' equity Total liabilities and shareholders' equity Bargain Deal, Inc. Income Statement For the Year Ended January 28, 2017 ($ in millions) Revenues Costs and expenses Operating income Other income (expense)* Income before income taxes Income tax expense Net income $39,618 38,171 1,447 $ (83) 1,364 773 591 $ 2,156 1,323 1,252 5,069 428 10,228 3,723 $13,951 $ 5,350 4,275 9,625 2,252 2,074 $13,951 *Includes $242 of interest expense. Required: 1-6. Calculate the current ratio for Bargain Deal for its fiscal year ended January 28, 2017. 1-b. Calculate the acid-test ratio for Bargain Deal for its fiscal year ended January 28, 2017. 1-c. Calculate the debt to equity ratio for Bargain Deal for its fiscal year ended January 28, 2017. 1-d. Calculate the times interest earned ratio for Bargain Deal for its fiscal year ended January 28, 2017. (For all requirements, round your answers to 2 decimal places.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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. Current assets: Cash and cash equivalents Short-term investments Accounts receivable (net) Inventory Other current assets Total current assets. Long-term assets Total assets Bargain Deal, Inc. Balance Sheet At January 28, 2017 ($ in millions) Assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Other current liabilities Total current liabilities Long-term liabilities Shareholders' equity Total liabilities and shareholders' equity Bargain Deal, Inc. Income Statement For the Year Ended January 28, 2017 ($ in millions) Revenues Costs and expenses Operating income Other income (expense)* Income before income taxes Income tax expense Net income Current ratio 1-a. 1-b. Acid-test ratio 1-c. Debt to equity ratio 1-d. $39,618 38,171 1,447 Times interest earned ratio $ (83) 1,364 773 591 $ 2,156 1,323 1,252 5,069 428 18, 228 3,723 $13,951 *Includes $242 of interest expense. Required: 1-a. Calculate the current ratio for Bargain Deal for its fiscal year ended January 28, 2017. 1-b. Calculate the acid-test ratio for Bargain Deal for its fiscal year ended January 28, 2017. 1-c. Calculate the debt to equity ratio for Bargain Deal for its fiscal year ended January 28, 2017. 1-d. Calculate the times interest earned ratio for Bargain Deal for its fiscal year ended January 28, 2017. (For all requirements, round your answers to 2 decimal places.) times $ 5,350 4,275 9,625 2,252 2,074 $13,951
Transcribed Image Text:Bargain Deal, Inc., is a leading retailer specializing in consumer electronics. A condensed income statement and balance sheet for the fiscal year ended January 28, 2017, are shown below. Current assets: Cash and cash equivalents Short-term investments Accounts receivable (net) Inventory Other current assets Total current assets. Long-term assets Total assets Bargain Deal, Inc. Balance Sheet At January 28, 2017 ($ in millions) Assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Other current liabilities Total current liabilities Long-term liabilities Shareholders' equity Total liabilities and shareholders' equity Bargain Deal, Inc. Income Statement For the Year Ended January 28, 2017 ($ in millions) Revenues Costs and expenses Operating income Other income (expense)* Income before income taxes Income tax expense Net income Current ratio 1-a. 1-b. Acid-test ratio 1-c. Debt to equity ratio 1-d. $39,618 38,171 1,447 Times interest earned ratio $ (83) 1,364 773 591 $ 2,156 1,323 1,252 5,069 428 18, 228 3,723 $13,951 *Includes $242 of interest expense. Required: 1-a. Calculate the current ratio for Bargain Deal for its fiscal year ended January 28, 2017. 1-b. Calculate the acid-test ratio for Bargain Deal for its fiscal year ended January 28, 2017. 1-c. Calculate the debt to equity ratio for Bargain Deal for its fiscal year ended January 28, 2017. 1-d. Calculate the times interest earned ratio for Bargain Deal for its fiscal year ended January 28, 2017. (For all requirements, round your answers to 2 decimal places.) times $ 5,350 4,275 9,625 2,252 2,074 $13,951
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