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The following information pertains to Austin, Incorporated and Huston Company: \table[[Account Title,Austin,Huston],[Current assets,5.75,900,580,900],[Total assets,550,000,620,000],[current...

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Accounting

The following information pertains to Austin, Incorporated and Huston Company:
\table[[Account Title,Austin,Huston],[Current assets,5.75,900,580,900],[Total assets,550,000,620,000],[current liabilities,26,250,40,600],[Total liabilities,290,000,483,500],[Stockholdens^3 equity,260,090,136,500],[Interest expense,17,20,20,100],[Income tax expense,34,400,30,200],[Net income,84,00>,85,800]]
Required
a-1. Compute each company's debt-to-assets ratio, current ratio, and times interest earned (EBIT must be computed).
Note: Round your "Debt-to-assets ratlo" and "Times Interest earned" to 1 decimal place and current ratio answers to 2 decimal places.
\table[[,Austin,Huston,],[Debt-to-assets ratio,,95,to 1.00],[Current ratio,,to 1.00,],[Times interest earned,,times,]]
a-2. Which company has the greater financlal risk?
\table[[Debt-to-assets ratio,],[Current ratio,],[Times interest earned,]]
b. Compute each company's return-on-equity ratio and return-on-assets ratlo. Use EBIT instead of net income when computing the return-on-ssets ratio.
Note: Round your answers to 1 decimal places.
\table[[,Auslin,,Huston],[Return-on-equity,,%4,],[Return-on-assels,,%,]]
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