($ in millions) revenues $ 39,538 costs and expenses 38,155 operating income 1,383 other income (expense)*…

($ in millions) revenues $ 39,538 costs and expenses 38,155 operating income 1,383 other income (expense)* (67) income before income taxes 1,316 income tax expense 533 net income $ 783 *includes $98 of interest expense. liquidity and solvency ratios for the industry are as follows: industry average current ratio 1.41 acid - test ratio 0.62 debt to equity 0.72 times interest earned 5.91 times required: 1 - a. calculate the current ratio for tech supplies for its fiscal year ended january 28, 2023. 1 - b. calculate the acid - test ratio for tech supplies for its fiscal year ended january 28, 2023. 1 - c. calculate the debt to equity ratio for tech supplies for its fiscal year ended january 28, 2023. 1 - d. calculate the times interest earned ratio for tech supplies for its fiscal year ended january 28, 2023. 2. assess whether each ratio indicates higher or lower risk of tech suppliess liquidity and solvency relative to its industry. complete this question by entering your answers in the tabs below. required 1 required 2 1 - a. calculate the current ratio for tech supplies for its fiscal year ended january 28, 2023. 1 - b. calculate the acid - test ratio for tech supplies for its fiscal year ended january 28, 2023. 1 - c. calculate the debt to equity ratio for tech supplies for its fiscal year ended january 28, 2023. 1 - d. calculate the times interest earned ratio for tech supplies for its fiscal year ended january 28, 2023. 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

($ in millions) revenues $ 39,538 costs and expenses 38,155 operating income 1,383 other income (expense)* (67) income before income taxes 1,316 income tax expense 533 net income $ 783 *includes $98 of interest expense. liquidity and solvency ratios for the industry are as follows: industry average current ratio 1.41 acid - test ratio 0.62 debt to equity 0.72 times interest earned 5.91 times required: 1 - a. calculate the current ratio for tech supplies for its fiscal year ended january 28, 2023. 1 - b. calculate the acid - test ratio for tech supplies for its fiscal year ended january 28, 2023. 1 - c. calculate the debt to equity ratio for tech supplies for its fiscal year ended january 28, 2023. 1 - d. calculate the times interest earned ratio for tech supplies for its fiscal year ended january 28, 2023. 2. assess whether each ratio indicates higher or lower risk of tech suppliess liquidity and solvency relative to its industry. complete this question by entering your answers in the tabs below. required 1 required 2 1 - a. calculate the current ratio for tech supplies for its fiscal year ended january 28, 2023. 1 - b. calculate the acid - test ratio for tech supplies for its fiscal year ended january 28, 2023. 1 - c. calculate the debt to equity ratio for tech supplies for its fiscal year ended january 28, 2023. 1 - d. calculate the times interest earned ratio for tech supplies for its fiscal year ended january 28, 2023. 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

Explanation:

Step1: Recall formula for current ratio

Current ratio = $\frac{\text{Current Assets}}{\text{Current Liabilities}}$. However, the values of current - assets and current - liabilities are not given in the provided information. Assuming we had those values, we would divide current assets by current liabilities. Since we don't have them, we cannot calculate the actual ratio. But the general formula is as stated.

Step2: Recall formula for acid - test ratio

Acid - test ratio = $\frac{\text{Current Assets}-\text{Inventory}}{\text{Current Liabilities}}$. Again, without values for current assets, inventory and current liabilities, we can't calculate the actual ratio.

Step3: Recall formula for debt - to - equity ratio

Debt - to - equity ratio = $\frac{\text{Total Debt}}{\text{Total Equity}}$. Without data on total debt and total equity, we can't compute the ratio.

Step4: Recall formula for times interest earned ratio

Times interest earned ratio = $\frac{\text{Income before interest and taxes}}{\text{Interest Expense}}$. Given that income before income taxes is $533$ million and interest expense is $98$ million (from the note), we have: [ \begin{align*} \text{Times interest earned ratio}&=\frac{533 + 98}{98}\ &=\frac{631}{98}\ &\approx 6.44 \end{align*} ]

Answer:

1-a. Cannot be calculated without current assets and current liabilities data. 1-b. Cannot be calculated without current assets, inventory and current liabilities data. 1-c. Cannot be calculated without total debt and total equity data. 1-d. 6.44