The current ratio is equal to current assets divided by current liabilities. Compute TIX's current ratio as of January $30,1999.$

b$.$ Compute OshKosh B'Gosh's current ratio and compare it to TJX$\text{'}$s$.$ Based on this, which company is "safer," in the short run, from a creditor's perspective? Is it significant that the balance sheet dates are different for the two companies?

c$.$ Consider the individual assets in OshKosh B'Gosh's current asset section. Are there any items listed that you think might be difficult to turn into cash quickly? If so$,$ list them and provide a brief explanation.

d$.$ Recompute both OshKosh B'Gosh's and T$]$X$\text{'}$s current ratios, including in the nu merator only those current assets that you think could be turned into cash quickly and easily.

e$.$ Provide a brief discussion of how TIX has obtained financing, commenting specifi. cally on the mix of debt and equity financing.

f$.$

Which company, TJX or OshKosh B'Gosh, would be considered "riskier" from a long$-$term creditor's perspective?

g$.$ TIX lists the asset "Cash and cash equivalents." What is the difference between "cash" and "cash equivalents"?

h$.$

Could TJX immediately pay off its long$-$term debt? How do we know? Describe what impact such a transaction would have on TJX$\text{'}$s balance sheet. What impact would this action have on TJX$\text{'}$s current ratio?

$.$

Assume that TJX issues common stock for $$300,000$ cash, then takes the cash and buys new stores costing $$275,000.$ Show which balance sheet accounts would change and provide their new balances.

j$.$

Instead of the transaction in part $($i$),$ assume that TJX obtains $$300,000$ cash from: group of banks in the form of a note payable due in five years, then takes the cash anc buys new stores costing $$275,000.$ The note matures in five equal portions over the five years. Provide the balance sheet accounts that would change and their new bal

ances.

k$.$

Refer to parts $($i$)$ and $($j$).$ Briefly discuss the impact the two methods of financing wil