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 earned $($EBIT must be computed$).$

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

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.

Complete this question by entering your answers in the tabs below.

Req A$2$

Compute each company's 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.$)$