Tech Supplies Company, Incorporated, is a leading retailer specializing in consumer electronics. A condensed income statement...

 

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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

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