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Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: E-Travel Pricecheck $ $ Total assets Total liabilities 6,237,156 1,886,224 3,454,475
Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: E-Travel Pricecheck $ $ Total assets Total liabilities 6,237,156 1,886,224 3,454,475 478,610 Total stockholders' equity 2,782,681 1,407,614 $ $ Sales revenue 3,055,426 2,438,212 Interest expense 86,233 26,084 Income tax expense 158,400 49,168 Net income 303,526 493,472 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 1a Req 1b Req 2a Req 2b Calculate the debt to equity ratio for E-Travel and Pricecheck. (Round ratios to 2 decimal places.) Debt to Equity Ratio Numerator/Denominator Amounts E-Travel 0 Pricecheck 0 < Req 1a Req 1b >
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