The following is a portion of the balance sheets of Macy’s, Inc., for the years ended February 1, 2020, and February 2, 2019:

Required:
1. What is Macy’s debt to equity ratio for the year ended February 1, 2020?
2. What would Macy’s debt to equity ratio be if we excluded long-term net deferred tax liabilities from its calculation? What would be the percentage change?
3. What might be the rationale for not excluding long-term net deferred tax liabilities from liabilities when computing the debt to equity ratio?

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Liabilities and Shareholders' Equity Current Liabilities: Short-term debt Merchandise accounts payable Accounts payable and accrued liabilities Income taxes Total Current Liabilities Long-Term Debt Long-Term Lease Liabilities Deferred Income Taxes Other Liabilities Shareholders' Equity: Common stock Additional paid-in capital Accumulated equity Treasury stock Accumulated other comprehensive loss Total Shareholders' Equity Total Liabilities and Shareholders' Equity February 1, 2020 $ 539 1,682 3,448 81 5,750 3,621 2,918 1,169 1,337 3 621 7,989 (1,241) (995) 6,377 $21,172 February 2, 2019 $ 43 1,655 3,366 168 5,232 4,708 1,238 1,580 3 652 8,050 (1,318) (951) 6,436 $19,194