Tech Supplies Company, Incorporated, is a leading retailer specializing in consumer electronics. A condensed income statement...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Tech Supplies Company, Incorporated, is a leading retailer specializing in consumer electronics. A condensed income statement and balance sheet for the fiscal year ended February 1, 2020, are shown below. Tech Supplies Company, Incorporated Balance Sheet At February 1, 2020 ($ in millions) Current assets: Cash and cash equivalents Accounts receivable (net) Inventory Other current assets Total current assets Long-term assets Total assets 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 Tech Supplies Company, Incorporated Income Statement For the Year Ended February 1, 2020 ($ in millions) Revenues Costs and expenses Operating income Other income (expense)* Income before income taxes Income tax expense Net income *Includes $170 of interest expense. $ 39,578 38, 163 1,415 (75) 1,340 653 $ 687 $ 2,076 1,212 5,061 412 8,761 3,683 $ 12,444 $ 4,950 3,475 8,425 2,236 1,783 $ 12,444 *Includes $170 of interest expense. Required: 1-a. Calculate the current ratio for Tech Supplies for its fiscal year ended February 1, 2020. 1-b. Calculate the acid-test ratio for Tech Supplies for its fiscal year ended February 1, 2020. 1-c. Calculate the debt to equity ratio for Tech Supplies for its fiscal year ended February 1, 2020. 1-d. Calculate the times interest earned ratio for Tech Supplies for its fiscal year ended February 1, 2020. Note: For all requirements, round your answers to 2 decimal places. 1-a. Current ratio 1-b. Acid-test ratio 1-c. Debt to equity ratio 1-d. Times interest earned ratio times Tech Supplies Company, Incorporated, is a leading retailer specializing in consumer electronics. A condensed income statement and balance sheet for the fiscal year ended February 1, 2020, are shown below. Tech Supplies Company, Incorporated Balance Sheet At February 1, 2020 ($ in millions) Current assets: Cash and cash equivalents Accounts receivable (net) Inventory Other current assets Total current assets Long-term assets Total assets 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 Tech Supplies Company, Incorporated Income Statement For the Year Ended February 1, 2020 ($ in millions) Revenues Costs and expenses Operating income Other income (expense)* Income before income taxes Income tax expense Net income *Includes $170 of interest expense. $ 39,578 38, 163 1,415 (75) 1,340 653 $ 687 $ 2,076 1,212 5,061 412 8,761 3,683 $ 12,444 $ 4,950 3,475 8,425 2,236 1,783 $ 12,444 *Includes $170 of interest expense. Required: 1-a. Calculate the current ratio for Tech Supplies for its fiscal year ended February 1, 2020. 1-b. Calculate the acid-test ratio for Tech Supplies for its fiscal year ended February 1, 2020. 1-c. Calculate the debt to equity ratio for Tech Supplies for its fiscal year ended February 1, 2020. 1-d. Calculate the times interest earned ratio for Tech Supplies for its fiscal year ended February 1, 2020. Note: For all requirements, round your answers to 2 decimal places. 1-a. Current ratio 1-b. Acid-test ratio 1-c. Debt to equity ratio 1-d. Times interest earned ratio times
Expert Answer:
Answer rating: 100% (QA)
To calculate the financial ratios for Tech Supplies Company for its fiscal year ended February 1 202... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
Best Buy Co, Inc., is a leading retailer specializing in consumer electronics. A condensed income statement and balance sheet for the fiscal year ended February 1, 2020, are shown next. Liquidity and...
-
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 30, 2016, are shown next. Liquidity and...
-
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 below. Best Buy Co,...
-
In Problems 5978, solve each equation in the complex number system. x 2 + 25 = 0
-
Crandal Dockworks is undergoing a major expansion. The expansion will be financed by issuing new 15 - year, $1,000 par, 9% annual coupon bonds. The market price of the bonds is $1,070 each. Five...
-
In Exercises 1 through 10, find the indicated product. (2x 3 + x 2 5)(x 2 x 3)
-
Consider the following information for HandyCraft Stores for 2008 and 2009. Required a. Compute ROI for both years. b. Break ROI down into profit margin and investment turnover. c. Comment on the...
-
Capitalization of Interest McPherson Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $5,000,000 on January 1, 2010....
-
1. Calculate the annualized mean and standard deviation of the monthly returns on the 4 factors and the monthly excess returns on the 3 ETFs. Also calculate the correlations between these 7 series....
-
The flywheel of a steam engine begins to rotate from rest with a constant angular acceleration of 1.33 rad/s. It accelerates for 27.5 s, then maintains a constant angular velocity. Calculate the...
-
Sisk Company has owned 10 percent of Maust, Inc., for the past several years. This ownership did not allow Sisk to have significant influence over Maust. Recently, Sisk acquired an additional 30...
-
Perez, Inc., applies the equity method for its 25 percent investment in Senior, Inc. During 2011, Perez sold goods with a 40 percent gross profit to Senior. Senior sold all of these goods in 2011....
-
When an investor elects the fair-value option for a significant influence investment, cash dividends received by the investor from the investee should be recorded as a. A deduction from the investors...
-
Give an example of stratifying a population of purchase orders.
-
Which of the following reasons best explains why a practitioner should obtain an engagement letter for a PrimePlus engagement? a. Attestation standards require that the practitioner use an engagement...
-
Diffusion and Segmentation. Include answers to questions and images of completed excel sheet in response. Data set, r output and questions are below. Data set: Month Adopters 1 1 2 5 3 9 4 18 5 42 6...
-
For the following exercises, write the first four terms of the sequence. a n = 2 n 2
-
On January 1, 2024, Nantucket Ferry borrowed $14,000,000 cash from Bank One and issued a four-year, $14,000,000, 6% note. Interest was payable annually on December 31. Prepare the journal entries for...
-
Garcia Company granted 9 million of its no par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $5 per share...
-
The Cloud Company employs a perpetual inventory system, and the Sky Corporation uses a periodic system. Describe the differences between the two systems in accounting for the following events: (1)...
-
Investigative accounting activities in the FBI grew dramatically during what 20th century. conflict?
-
Which type of auditor ferrets out deception in financial statements?
-
Who was probably the first person to coin the phrase forensic accounting in print?
Study smarter with the SolutionInn App