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Chapter # 10 Help Savei The following information pertains to Austin, Inc. and Huston Company 62,500 480,000 31,258 376,00e 104,860 18,460 28,860 70,780 48,099 488,806

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Chapter # 10 Help Savei The following information pertains to Austin, Inc. and Huston Company 62,500 480,000 31,258 376,00e 104,860 18,460 28,860 70,780 48,099 488,806 12,800 290,8e8 190,800 15,800 31,600 70,000 Current assets Total assets Current abilities Total liabilities Stockholders' equity Interest expense Income tax expense Net income Required a-1. Compute each company's debt-to-assets ratio, current ratio, and times interest earned (EBIT must be computed).(Round your "Debt-to-assets ratio" and "Times interest earned" to 1 decimal place and current ratio answers to 2 decimal places) Huston Austin Debt-to-assets ratio Current ratio Times interest eamed to 1.00 times to 1.00 times Next Prey 2 of 2 a-2. Which company has the greater financial risk? Debl-to-assets ratio Current ratio Times interest eaned b. Compute each company's return-on-equity ratio and return-on-assets ratio. Use EBIT instead of net income when computing the return-on-assets ratio. (Round your answers to 2 decimal places.)

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