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Apple Corporation and Pineapple Corporation are companies in the manufacturing industry. Assume that the companies do not need to pay taxes. We are provided with
Apple Corporation and Pineapple Corporation are companies in the manufacturing industry. Assume that the companies do not need to pay taxes. We are provided with the relevant information in the table below. Based on the information in the table, calculate and explain the following ratios. Show all workings and give your answers to 2 decimal places (when applicable). (i) Debt ratio (3 marks) (ii) Time interest earned (3 marks) (iii) Discuss which firm has higher risk? Justify your answer. (4 marks)
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