Best Buy Co, 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 next. 

Liquidity and solvency ratios for the industry are as follows: 

                                    Industry Average 

Current ratio                         1.43 

Acid-test ratio                      1.15 

Debt to equity                      0.68 

Times interest earned         8.25 times

Required: 

1. Determine the following ratios for Best Buy for its fiscal year ended January 28, 2017. 

a. Current ratio

b. Acid-test ratio 

c. Debt to equity ratio 

d. Times interest earned ratio 

2. Using the ratios from requirement 1, assess Best Buy’s liquidity and solvency relative to its industry

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Best Buy Co., Inc. Balance Sheet At January 28, 2017 ($ in millions) Assets Current assets: Cash and cash equivalents $ 2,240 Short-term investments 1,681 Accounts receivable (net) 1,347 Inventory 4,864 Other current assets 384 Total current assets 10,516 Long-term assets 3,340 Total assets $13,856 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 4,984 Other current liabilities 2,138 Total current liabilities 7,122 Long-term liabilities Shareholders' equity 2,025 4,709 Total liabilities and shareholders' equity $13,856