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The following information pertains to Austin, Incorporated and Huston Company: Required a-1. Compute each company's debt-to-assets ratio, current ratio, and times interest eamed (EBIT must
The following information pertains to Austin, Incorporated and Huston Company: Required a-1. Compute each company's debt-to-assets ratio, current ratio, and times interest eamed (EBIT must be computed). Note: Round your "Debt-to-ossets ratio" and "Times interest eomed" to 1 decimal place and current ratio answers to 2 decimal places. 0-2. Which company has the greater financial itsk? b. Compute each company's return-on-equity ratio and return-on-assets ratio. Use EBIT instead of net income when computing the return-on-assets ratio Note: Round your answers to 1 decimal ploces
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