Problem 9-8A Calculate and analyze ratios (LO9-8) Selected financial data for Bahama Bay and Caribbean Key are
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Question:
Problem 9-8A Calculate and analyze ratios (LO9-8)
Selected financial data for Bahama Bay and Caribbean Key are as follows:
($ in millions) | Bahama Bay | Caribbean Key | ||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||
Total assets | $ | 9,583 | $ | 9,502 | $ | 8,783 | $ | 8,822 | ||||
Total liabilities | 8,022 | 7,486 | 7,463 | 7,453 | ||||||||
Total stockholders equity | 1,561 | 2,016 | 1,320 | 1,369 | ||||||||
Sales revenue | $ | 5,847 | $ | 12,819 | ||||||||
Interest expense | 192 | 151 | ||||||||||
Tax expense | 70 | 344 | ||||||||||
Net income | 317 | 350 |
3-a. Calculate the times interest earned ratio for Bahama Bay and Caribbean Key. (Do not round intermediate calculations. Round ratios answers to 1 decimal place. Enter your answer in millions. (i.e., $5,500,000 should be entered as 5.5).)
3-b. Which company is better able to meet interest payments as they become due?
multiple choice 3
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Bahama Bay
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Caribbean Key
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