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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 E-Travel $ 7,437,156 4,254,475 3,182,681
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 34,084 57,168 509,472 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 ratio? 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 Ratio E-Travel Times Interest Earned Ratio Pricecheck 2-b. Which company is better able to meet interest payments as they become due? O E-Travel O Pricecheck
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