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
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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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