The following is a portion of the balance sheets of Macy’s, Inc. for the years ended January 28, 2017 and January 30, 2016: 

Required: 

1. What is Macy’s debt to equity ratio for the year ended January 28, 2017? 

2. What would Macy’s debt to equity ratio be if we excluded deferred tax liabilities from its calculation? What would be the percentage change? 

3. What might be the rationale for not excluding long-term deferred tax liabilities from liabilities when computing the debt to equity ratio? 

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January 28, 2017 January 30, 2016 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Short-term debt 309 $ 642 Merchandise accounts payable Accounts payable and accrued liabilities 1,423 1,526 3,563 3,333 Income taxes 352 227 Total Current Liabilities 5,647 5,728 Long-Term debt 6,562 6,995 Deferred Income Taxes 1,443 1,477 Other Liabilities 1,877 2,123 Shareholders' Equity Common stock (310.3 and 340.6 shares outstanding) Additional paid-in capital Accumulated equity Treasury stock Accumulated other comprehensive loss 3 3 617 621 6,088 6,334 (1,489) (896) (1,665) (1,043) Total Macy's, Inc. Shareholders' Equity Noncontrolling interest Total Shareholders' Equity 4,323 4,250 (1) 3 4,322 4,253 Total Liabilities and Shareholders' Equity $19,851 $20,576