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The following information pertains to Austin, Incorporated and Huston Company: table [ [ Account Title,Austin,Huston ] , [ Current assets, 5 . 7 5
The following information pertains to Austin, Incorporated and Huston Company:
tableAccount Title,Austin,HustonCurrent assets,Total assets,current liabilities,Total liabilities,Stockholdens equity,Interest expense,Income tax expense,Net income,
Required
a Compute each company's debttoassets ratio, current ratio, and times interest earned EBIT must be computed
Note: Round your "Debttoassets ratlo" and "Times Interest earned" to decimal place and current ratio answers to decimal places.
tableAustin,Huston,Debttoassets ratio,,to Current ratio,,to Times interest earned,,times,
a Which company has the greater financlal risk?
tableDebttoassets ratio,Current ratio,Times interest earned,
b Compute each company's returnonequity ratio and returnonassets ratlo. Use EBIT instead of net income when computing the returnonssets ratio.
Note: Round your answers to decimal places.
tableAuslin,,HustonReturnonequity,,Returnonassels,,
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