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Please answer 2.b Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: ($ in thousands) Total assets Total liabilities Total stockholders'
Please answer 2.b
Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: ($ in thousands) Total assets Total liabilities Total stockholders' equity E-Travel $4,887,156 2,554,475 2,332,681 Pricecheck $1,652, 224 469,610 1,182,614 Sales revenue Interest expense Tax expense Net income $ 2,605, 426 77,233 140,400 285,526 $1,988,212 17,084 40,168 475,472 Required: 1-a. Calculate the debt to equity ratio for E-Travel and Pricecheck. (Enter dollar answers in thousands of dollars and round ratios to 2 decimal places.) Answer is complete and correct. Debt to Equity Ratio Total liabilities Total stockholders' equity 2,554,475 2,332,681 E-Travel 1.10 Debt to Equity Ratio Total stockholders' equity 1,182,614 Total liabilities 469,610 Pricecheck 0.40 1-b. Which company has the higher ratio? E-Travel Pricecheck 2-a. Calculate the times interest earned ratio for E-Travel and Pricecheck. (Enter dollar answers in thousands of dollars and round ratios to 1 decimal place.) Answer is not complete. Times Interest Earned Ratio E-Travel Times Interest Earned Ratio Pricecheck 2-b. Which company is better able to meet interest payments as they become due? E-Travel PricecheckStep by Step Solution
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