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Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: Total assets E-Travel 2,654,475 2,382,681 Pricecheck $ 1,678,224 470,610 1,207,614 $
Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: Total assets E-Travel 2,654,475 2,382,681 Pricecheck $ 1,678,224 470,610 1,207,614 $ 5,037,156 Total liabilities Total stockholders' equity Sales revenue $ 2,655,426 $ 2,038,212 Interest expense 78,233 18,084 Income tax expense 142,400 41,168 287,526 477,472 Net income 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.) E-Travel Pricecheck Debt to Equity Ratio Numerator/Denominator Amounts < Req 1a Req 1b > 0 0
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