Question

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)
Assets
Current assets:
Cash and cash equivalents	$ 2,106
Accounts receivable (net)	1,227
Inventory	5,064
Other current assets	418
Total current assets	8,815
Long-term assets	3,698
Total assets	$ 12,513
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$ 5,100
Other current liabilities	3,775
Total current liabilities	8,875
Long-term liabilities	2,242
Shareholders’ equity	1,396
Total liabilities and shareholders’ equity	$ 12,513

Tech Supplies Company, Incorporated
Income Statement
For the Year Ended February 1, 2020
($ in millions)
Revenues	$ 39,593
Costs and expenses	38,166
Operating income	1,427
Other income (expense)*	(78)
Income before income taxes	1,349
Income tax expense	698
Net income	$ 651

*Includes $197 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.

Answer 1