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Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: Total assets Total liabilities Total stockholders' equity Sales revenue Interest expense Income
Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: Total assets Total liabilities Total stockholders' equity Sales revenue Interest expense Income tax expense Net income E-Travel $ 5,037, 156 2,654,475 2,382,681 $ 2,655,426 79,233 142,400 287,526 Pricecheck $ 1,679,224 470,610 1,207,614 $ 2,039,212 18.084 41,168 477,472 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. Reg la Reg 1b Reg 2a Reg 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 Pricecheck 0 Reg 13 Req 1b > Complete this question by entering your answers in the tabs below. Regla Reg 1b Reg 2a Reg 2b Which company has higher leverage risk? Which company has higher leverage risk? Complete this question by entering your answers in the tabs below. Reg la Reg 16 Reg 2a Reg 2b Calculate the times interest earned ratio for E-Travel and Pricecheck. (Round ratios to 1 decimal place.) Times Interest Earned Ratio Numerator/Denominator Amounts E-Travel 0 Pricecheck 0 Complete this question by entering your answers in the tabs below. Reg la Reg 1b Reg 2a Reg 2b Which company is better able to meet interest payments as they become due? Which company is better able to meet interest payments as they become due?
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