The following information pertains to Austin, Inc. and Huston Company:

Account Title		Austin				Huston
Current assets		$	60,000			$	72,500
Total assets			380,000				560,000
Current liabilities			18,000				36,250
Total liabilities			260,000				437,000
Stockholders equity			230,000				123,000
Interest expense			16,600				19,600
Income tax expense			33,200				29,600
Net income			78,000				79,900

Required a-1. Compute each companys debt-to-assets ratio, current ratio, and times interest earned (EBIT must be computed). (Round your "Debt-to-assets ratio" and "Times interest earned" to 1 decimal place and current ratio answers to 2 decimal places.)

a-2. Which company has the greater financial risk?

b. Compute each companys return-on-equity ratio and return-on-assets ratio. Use EBIT instead of net income when computing the return-on-assets ratio. (Round your answers to 2 decimal places.)