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Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: Total assets Total liabilities E-Travel 2,454,475 $ 4,737,156 Total stockholders' equity
Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: Total assets Total liabilities E-Travel 2,454,475 $ 4,737,156 Total stockholders' equity 2,282,681 Sales revenue $ 2,555,426 Interest expense 76,233 Income tax expense 138,400 Net income 283,526 Pricecheck $ 1,626,224 468,610 1,157,614 $ 1,938,212 16,084 39,168 473,472 Required: 1-a. Calculate the debt to equity ratio for E-Travel and Pricecheck. 1-b. Which company has higher leverage risk? 2-a. Calculate the times interest earned ratio for E-Travel and Pricecheck. 2-b. Which company is better able to meet interest payments as they become due? Complete this question by entering your answers in the tabs below. Req la Req 1b. Req 2a Req 2b Calculate the times interest earned ratio for E-Travel and Pricecheck. (Round ratios to 1 decimal place.) Times Interest Earned Ratio Numerator/Denominator Net income + Interest expense + Income tax expense E-Travel Interest expense Net income + Interest expense + Income tax expense Pricecheck Interest expense Amounts I 0 0
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