Original blog posting October 5 2017 Toys R Us Declared Chapter 11 bankruptcy protection in September 2017 for US operations Wants to restructure or remove some of its debts Will also be doing similar action in Canada ID: 752857
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Slide1
Given that Toys “R” Us has declared bankruptcy, what are its current, quick, and debt ratios?
Original blog posting (October 5, 2017)Slide2
Toys “R” UsDeclared Chapter 11 bankruptcy protection in September 2017 for US operationsWants to restructure or remove some of its debts
Will also be doing similar action in CanadaSlide3
Balance sheetsSlide4
Question 1Calculate the Toys “R” Us current ratio for the most recent two years. Interpret these ratios.Slide5
Question 2Calculate 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?Slide6
Question 3Calculate the Toys “R” Us debt ratio for the most recent two years. Interpret these ratios.Slide7
Question 4Why is total stockholders’ equity negative?Slide8
Question RecapCalculate 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?Slide9
For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at http://accountingintheheadlines.com/ Questions or comments? Contact Dr. Wendy Tietz at
wtietz@kent.edu