Question - Toys "R" Us, Inc. and Subsidiaries Consolidated Balance Sheets Condensed and adapted for educational use In millions
|
|
Fiscal year ending
|
|
|
1/28/2017
|
1/30/2016
|
|
ASSETS
|
|
|
|
Current assets:
|
|
|
|
Cash and cash equivalents
|
$566
|
$680
|
|
Accounts and other receivables
|
255
|
225
|
|
Merchandise inventories
|
2,476
|
2,270
|
|
Other current assets
|
92
|
113
|
|
Total current assets
|
$3,389
|
$3,288
|
|
Property and equipment, net
|
3,067
|
3,163
|
|
Other assets
|
452
|
459
|
|
Total assets
|
$6,908
|
$6,910
|
|
|
|
|
|
LIABLITIES AND EQUITY
|
|
|
|
Current liabilities
|
$2,738
|
$2,798
|
|
Long-term debt
|
4,642
|
4,612
|
|
Other non-current liabilities
|
820
|
765
|
|
Total liabilities
|
$8,200
|
$8,175
|
|
Total stockholders' equity (deficit)
|
(1,292)
|
(1,265)
|
|
Total liabilities and equity
|
$6,908
|
$6,910
|
Requirements -
1. Calculate the Toys "R" Us current ratio for the most recent two years. Interpret these ratios.
2. Calculate the Toys "R" Us acid-test ratio for the most recent two years. Interpret these ratios. How does the quick ratio compare to the current ratio?
3. Calculate the Toys "R" Us debt ratio for the most recent two years. Interpret these ratios.
4. Why is total stockholders' equity negative?