Accounting in the Headlines | Real life examples to use in ...



Given that Toys “R” Us has declared bankruptcy, what are its current, quick, and debt ratios?Toys “R” Us (see ) declared Chapter 11 bankruptcy protection in September 2017, for its US operations. The toy retailer is seeking to restructure or remove some of its debts. Toys “R” Us is also looking to take similar actions for its Canadian operations.Here are the two most recent Toys “R” Us balance sheets. Discussion QuestionsCalculate the Toys “R” Us current ratio for the most recent two years. Interpret these ratios.Calculate the Toys “R” Us quick ratio for the most recent two years. Interpret these ratios. How does the quick ratio compare to the current ratio?Calculate the Toys “R” Us debt ratio for the most recent two years. Interpret these ratios.Why is total stockholders’ equity negative? ................
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