BAHAMA BAY and CARIBBEAN KEY Requirement 1: (in Smillions) Total Liabilities = Stockholders' Equity Debt to Equity Ratio Bahama Bay Caribbean Key Requirement 2: (in $millions) Net Income Average Total Assets = Return on Assets Ratio Bahama Bay Caribbean Key Requirement 3: (in $millions) Net Income+ Interest+ Taxes -- Interest Times Interest Earned Ratio Bahama Bay Caribbean Key BAHAMA BAY and CARIBBEAN KEY (In $millions) $ Bahama Bay 2021 2020 8,861 $ 9,560 5,724 6,606 3,137 2,954 Total assets Total liabilities Total stockholders' equity $ Caribbean Key 2021 2020 7,640 $ 7,507 2,819 2,689 4,821 4,818 $ $ Sales revenue Interest expense Tax expense Net income 6,321 170 148 562 3,949 70 8 88 P9-8A Selected financial data for Bahama Bay and Caribbean Key are as follows: ($ in millions) Bahama Bay Caribbean Key 2021 2020 2021 2020 Total assets $8.861 $9,560 $7.640 $7.507 2.689 Total liabilities 5,724 6.606 2.819 Total stockholders' equity 3.137 2.954 4,821 4.818 Sales revenue $6,321 $3.949 Interest expense 170 70 Tax expense 148 7 8 9 20 Net income 562 88 Required: 1. Calculate the debt to equity ratio for Bahama Bay and Caribbean Key for the most recent year. Which company has the higher ratio 2. Calculate the return on assets for Bahama Bay and Caribbean Key. Which company appears more profitable? 3. Calculate the times interest earned ratio for Bahama Bay and Caribbean Key Which company is better able to meet interest paynents as they become due