Question
Selected financial data for Bahama Bay and Caribbean Key are as follows: ($ in millions) Bahama Bay Caribbean Key 2018 2017 2018 2017 Total assets
Selected financial data for Bahama Bay and Caribbean Key are as follows:
($ in millions) | Bahama Bay | Caribbean Key | ||||||
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2018 | 2017 | 2018 | 2017 | |||||
Total assets | $ | 9,503 | $ | 9,422 | $ | 8,703 | $ | 8,742 |
Total liabilities | 7,982 | 7,446 | 7,423 | 7,413 | ||||
Total stockholders equity | 1,521 | 1,976 | 1,280 | 1,329 | ||||
Sales revenue | $ | 5,807 | $ | 12,779 | ||||
Interest expense | 180 | 143 | ||||||
Tax expense | 66 | 340 | ||||||
Net income | 309 | 342 | ||||||
1-a. Calculate the debt to equity ratio for Bahama Bay and Caribbean Key for the most recent year. (Do not round intermediate calculations. Round ratios answers to 1 decimal place. Enter dollar answer in millions. (i.e., $5,500,000 should be entered as 5.5).) 1-b. Which company has the higher ratio?
2-a. Calculate the return on assets for Bahama Bay and Caribbean Key. (Do not round intermediate calculations. Round ratios answers to 1 decimal place. Enter dollar answer in millions. (i.e., $5,500,000 should be entered as 5.5).) 2-b. Which company appears more profitable? 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 dollar 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? |
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