Question
Selected financial data for Surf City and Paradise Falls are as follows: ($ in millions) Surf City Paradise Falls 2018 2017 2018 2017 Total assets
Selected financial data for Surf City and Paradise Falls are as follows:
($ in millions) | Surf City | Paradise Falls | ||||||
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2018 | 2017 | 2018 | 2017 | |||||
Total assets | $ | 16,133 | $ | 14,922 | $ | 33,296 | $ | 34,121 |
Total liabilities | 9,720 | 8,195 | 13,938 | 14,188 | ||||
Total stockholders equity | 6,413 | 6,727 | 19,358 | 19,933 | ||||
Sales revenue | $ | 6,503 | $ | 14,616 | ||||
Interest expense | 318 | 408 | ||||||
Tax expense | 44 | |||||||
Net income | 568 | 2,324 | ||||||
1-a. Calculate the debt to equity ratio for Surf City and Paradise Falls for the most recent year. (Do not round intermediate calculations. Round ratios answers to 2 decimal places. Enter dollar answer in millions. (i.e., $5,500,000 should be entered as 5.5))
2-a. Calculate the return on assets for Surf City and Paradise Falls. (Round your answers to 1 decimal place. Enter dollar answer in millions. (i.e., $5,500,000 should be entered as 5.5))
3-a. Calculate the times interest earned ratio for Surf City and Paradise Falls. (Round ratios answers to 1 decimal place. Enter dollar answer in millions. (i.e., $5,500,000 should be entered as 5.5))
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