Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: ($ in thousands) Total assets Total liabilities Total stockholders' equity E-Travel Pricecheck

image text in transcribed
image text in transcribed
Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: ($ in thousands) Total assets Total liabilities Total stockholders' equity E-Travel Pricecheck $ 6,387,156 $ 1,912,224 3,554,475 479,610 2,832,681 1,432,614 Sales revenue Interest expense Tax expense Net Income $ 3,105,426 $ 2,488,212 87,233 27,084 160,400 50,168 305,526 495,472 Required: 1-a. Calculate the debt to equity ratio for E-Travel and Pricecheck. (Enter dollar answers using amounts given in thousands of dollars and round ratios to 2 decimal places.) Debt to Equity Ratio E-Travel Debt to Equity Ratio Pricecheck 2-a. Calculate the times interest earned ratio for E-Travel and Pricecheck. (Enter dollar answers using amounts given in thousands of dollars and round ratios to 1 decimal place.) Times Interest Earned Ratio E-Travel Times Interest Earned Ratio Pricecheck 2-b. Which company is better able to meet interest payments as they become due? O E-Travel Pricecheck

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions