complete this homework, create a spreadsheet to calculate & analyze the M6 capital structure ratios. After you have completed your spreadsheet, you will copy it to Tab 2, then you will click on "Formulas," then on "Show Formulas." Remember that you are graded on the assignment as well as your accuracy in using the Principles of Spreadsheet Design. Below are Macy's 2024 financials. Use them to calculate & analyze the capital structure ratios from Module 6M

To complete this homework, create a spreadsheet to calculate & analyze the M6 capital structure ratios. After you have completed your spreadsheet, you will copy it to Tab 2, then you will click on \"Formulas,\" then on \"Show Formulas.\" Remember that you are graded on the assignment as well as your accuracy in using the Principles of Spreadsheet Design. Below are Macy's 2024 financials. Use them to calculate & analyze the capital structure ratios from Module 6. Consolidated Balance Sheets 2024 Cash & cash equivalents $1,034 Receivables 293 Merchandise inventories Prepaid expenses & other Total Current Assets Property & Equipment net Right of Use Assets Goodwill Other Intangible Assets net Other Assets Total Assets Merchandise accounts payable Accounts payable & accruals Income taxes Total Current Liabilities Long-Term Debt Long-Term Lease Liabilities Deferred Income Taxes Other Liabilities Total Liabilities Total Shareholders' Equity Total Liabilities & Equit 4,137 $16,246 2023 $862 300 4,082 $16,866 2022 Con. Income Statements 2024 Net sales $23,092 Other revenue 774 Total revenue 23,866 Cost of sales (14,143) Selling, gen. & admin. exp. (8,375) Gains on sale of real estate 61 Restructuring & other (1,027) Operating income 382 Benefit plan income, net 11 Settlement charges (134) Interest expense, net (135) Losses, early retire., debt 0 Income before taxes 124 Income tax expense (19) Net income $105 2023 $24,442 1,007 25,449 (15,306) (8,461) 89 (41) 1,730 20 (39 (162) (31 1,518 (341) $1,177 2022 $24,460 939 25,399 (14,956) (8,154) 91 (30) 2,350 (96) (255) (199) 1,866 (436) $1,430 Debt-equity Ratio FELICIANO SCHOOL of BUSINESS Montclair State University Relationship between long-term debt and equity . Debt equity ratio = long-term debt/shareholders' equity Measures the relationship between the credit holders' stake in the company and the shareholders' Step 1: Is it increasing? 1 ratio is considered risky since firm has to make interest and principal payments - Step 2: Is it greater than 1? A ratio > 1.0 tells us that the creditors' have a bigger stake in the company than the shareholders do. 15Debt-equity Ratio: Example 3 FELICIANO SCHOOL of BUSINESS Montclair State University Use the table below to find Best Buy's 2023 debt-equity ratio. Identify the bad movement, if any, and the problem it indicates. Current assets Equity 2023 2022 2021 Cash & cash equivalents $1,874 Common stock, $0.10 par 22 Receivables, net 1, 141 Additional paid-in capital 21 Long-term debt 1,160 1,216 1,253 Merchandise inventories 5, 140 Retained earnings 2,430 Equity 2,795 3,020 4,587 Other current assets 647 Acc. other comp. income 322 Total current assets 8,802 Total equity 2,795 D-E 0.415 0.403 0.273 Net property & equipment 2,352 Total liabilities and equity 15,803 Other assets 4,649 Total assets 15,803 Current liabilities Movement of concern Problem indicated by bad Accounts payable 5,687 (inc. yrs) movement Accruals 1,248 Debt-equity 1 2021 - 2023 firm is getting riskier Current liabilities & debt 354 Total current liabilities 8,979 Long-term lease liabilities 2, 164 Long-term liabilities 705 Long-term debt 1, 160 16The Times Interest Earned Ratio T rELiciano SCHOOL of BUSINESS Montclair State University Ability to make interest payments Times interest earned = operating income/interest expense Measures a cushion: are we close to having a problem paying our interest expense? "Bad" trend 1.