Answer
A)=1.47655 times
B)0.74 times
C)1.94 times
D)26.2 times
Explanation
The formulas and calculations are shown below:
1-A)the current ratio for Best Buy for its fiscal year ended January 28, 2017.
= Total Current assets ÷ total current liabilities=[10516 ÷ 7122]
=1.47655
1-B)the acid-test ratio for Best Buy for its fiscal year ended January 28, 2017 can be calculated below as
Quick assets = Cash and cash equivalents + short-term investments + Accounts receivable (net)
=2240 + 1681 + 1347=5268
the current liabilities = 7122
If we substitute the values into the above expresion, we have
=$ 5652 ÷ $7122
= 0.74 times
1-C.) the debt to equity ratio for Best Buy for its fiscal year ended January 28, 2017.
Debt equity ratio = (Total debt ÷ Shareholders’ Equity)
where,
Total debt = Total current liabilities + Long-term liabilities
Total current liabilities =$ 9147
the Shareholders’ equity is $4709
If we substitute the values we have,
$9147 ÷$ 4709
= 1.94 times
1-D. Calculate the times interest earned ratio for Best Buy for its fiscal year ended January 28, 2017 can be calculated as
Times interest earned ratio = (Earnings before interest and taxes) ÷ (Interest expense)
Earnings before interest and taxes = Income before income tax + Interest expense + income tax expense
$1854 - $38 + $72
=$1888
Interest expense=$72
Then substitute into above expresion, we have
=$ 1888 ÷$ 72
= 26.2 times
