Question

lalizing In consumer electronics. A condensed income statement and balance sheet for the Bargain Deal, Inc., is a leading retailer spec fiscal year ended January 30, 2016, are shown below. 1, Inc Balance Sheet At January 30, 2016 Assets Current assetS1 Cash and cash equivalents Short-term investments Accounts receivable, net Merchandise inventories Other current assets 2,136 1,321 1,242 5,067 424 10,190 3, 713 Total current assetB Long-term assets Total assets $13,903 Liabilities and Shareholder Equity Current liabilities Accounts payable 5,250 4,075 9,325 2,248 2,330 $13,903 other current liabilities Total current liabilities Long-term liabilitien Shareholders equity Total liabilities and shareholdera' equity Bargain Deal, Inc Income Statement For the Year Ended January 30, 2016 ($ in milliona) $39,608 38,169 1,439 81 1,358 743 s 615 Revenuen Costa and expenses Operating income Other income (expense)* Income before income taxes Income tax expense Net income Includes $224 of interest expense

Answer 1

1-a)	Current ratio = Current assets/Current liabilities = 10190/9325 =	1.09
1-b)	Acid-test ratio = (Cash & cash equivalents+Short term investments+Accounts receivable)/Current liabilities = (2136+1321+1242)/9325 =	0.50
1-c)	Debt to equity ratio = Total debt/Shareholders' equity = (9325+2248)/2330 =	4.97
1-d)	Times interest earned ratio = Operating income/Interest expense = 1439/224 =	6.42	times