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Selected financial data for Surf City and Paradise Falls are as follows: Surf City Paradise Falls ($ in millions) 2024 2023 2024 2023 Total
Selected financial data for Surf City and Paradise Falls are as follows: Surf City Paradise Falls ($ in millions) 2024 2023 2024 2023 Total assets $16,393 $15,122 $35,013 $34,321 Total liabilities 9,800 8,295 15,775 14,288 Total stockholders' equity 6,593 6,827 Sales revenue $6,603 19,238 $14,716 20,033 Interest expense 348 428 Income tax expense 0 54 Net income 588 Required: 2,344 1-a. Calculate the debt to equity ratio for Surf City and Paradise Falls for the most recent year. 1-b. Which company has the higher ratio? 2-a. Calculate the return on assets for Surf City and Paradise Falls for the most recent year. 2-b. Which company appears more profitable? 3-a. Calculate the times interest earned ratio for Surf City and Paradise Falls for the most recent year. 3-b. Which company is better able to meet interest payments as they become due?
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