Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. exercise 9-23(algo) calculate and analyze ratios (

Exercise 9-23(Algo) Calculate and analyze ratios (LO9-8) Two online travel companies, E-Travel...

50.1K

Verified Solution

Question

Accounting

Exercise 9-23(Algo) Calculate and analyze ratios (LO9-8)
Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data:
E-TravelPricecheckTotal assets$ 5,637,156$ 1,782,224Total liabilities3,054,475474,610Total stockholders equity2,582,6811,307,614Sales revenue$ 2,855,426$ 2,238,212Interest expense82,23322,084Income tax expense150,40045,168Net income295,526485,472
Required:
1-a. Calculate the debt to equity ratio for E-Travel and Pricecheck.
1-b. Which company has higher leverage risk?
2-a. Calculate the times interest earned ratio for E-Travel and Pricecheck.
2-b. Which company is better able to meet interest payments as they become due?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students