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: Total assets Total liabilities Total stockholders' equity E-Travel $ 7,437,156 4,254,475 3,182,681

image text in transcribed
image text in transcribed
Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: Total assets Total liabilities Total stockholders' equity E-Travel $ 7,437,156 4,254,475 3,182,681 Pricecheck $ 2,094,224 486,610 1,607,614 Sales revenue Interest expense Tax expense Net income $ 3,455,426 94,233 174,400 319,526 $ 2,838,212 34,884 57, 168 5e9,472 Required: 1-a. Calculate the debt to equity ratio for E-Travel and Pricecheck. (Round ratios to 2 decimal places.) Debt to Equity Ratio E-Travel Debt to Equity Ratio PriceCheck 1-b. Which company has the higher ratlo? O E-Travel O Pricecheck 2-a. Calculate the times interest earned ratio for E-Travel and Pricecheck. (Round ratios to 1 decimal place.) Times Interest Earned Ratia E-Travel Times Interest Earned Ratio ces Pricecheck 2-b. Which company is better able to meet interest payments as they become due? DE Travel D 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

Recommended Textbook for

Payroll Accounting 2019

Authors: Bernard J. Bieg, Judith A. Toland

29th Edition

1337619779

More Books

Students also viewed these Accounting questions

Question

Did the author acknowledge the limitations of the study?

Answered: 1 week ago