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Othe r 1.things being equal, do both companies appear to have the ability to meet their obligation as measured by the debt to equity ratio

image text in transcribed Otheimage text in transcribedr 1.things being equal, do both companies appear to have the ability to meet their obligation as measured by the debt to equity ratio

2. Based solely on the times interest earned ratio, do you reach the same conclusion as requirement 1?

3.Is the margin of safety provided to creditors by Discount Goods improving or declining in recent years as measured by the average times interest earned ratio?

Times Interest Earned Ratio N 0 14 00 16 2012 2013 2014 2015 10.75 10.66 11.14 11.04 11.97 10.79 10.71 2016 2017 2018 2019 14.50 10.93 2020 2021 Big Store Company / Year Long-Term Solvency: Times Interest Earned Ratio Discount Goods 12.69 2012 6.78 2013 7.32 2014 0.51 2015 2016 4.97 5.71 5.91 5.37 2017 2018 2019 4.96 2020 4.84 2021 4.42 Long-Term Solvency: Debt to Equity Ratio Company / Year Big Store Discount Goods 2.0 1.9017 1.8220 1.8 1.6783 1.6732 1.5841 1.6 1.4907 1.4296 1.4119 1.4 1.2 Debt to Equity Ratio 1.0 0.8 0.6 0.4 0.2 0.0 2018 2019 2020 2021 2018 2019 2020 2021 Times Interest Earned Ratio N 0 14 00 16 2012 2013 2014 2015 10.75 10.66 11.14 11.04 11.97 10.79 10.71 2016 2017 2018 2019 14.50 10.93 2020 2021 Big Store Company / Year Long-Term Solvency: Times Interest Earned Ratio Discount Goods 12.69 2012 6.78 2013 7.32 2014 0.51 2015 2016 4.97 5.71 5.91 5.37 2017 2018 2019 4.96 2020 4.84 2021 4.42 Long-Term Solvency: Debt to Equity Ratio Company / Year Big Store Discount Goods 2.0 1.9017 1.8220 1.8 1.6783 1.6732 1.5841 1.6 1.4907 1.4296 1.4119 1.4 1.2 Debt to Equity Ratio 1.0 0.8 0.6 0.4 0.2 0.0 2018 2019 2020 2021 2018 2019 2020 2021

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