The following information pertains to Austin, Incorporated and Huston Company:

Account Title Austin Huston

Current assets $ $40,000$ $ $40,000$

Total assets $300,000300,000$

Current liabilities $15,00020,000$

Total liabilities $200,000240,000$

Stockholders equity $100,00060,000$

Interest expense $14,00017,000$

Income tax expense $28,00027,00$

 

 a$-2.$ Which company has the greater financial risk? And also discuss the following

 

Debt$-$assets ratio

current ratio

times interest earned